Personal income rose 0.4 percent in November after rising 0.3 percent in October. Wages and salaries, the largest component of personal income, rose 0.5 percent in November after rising 0.3 percent in October.
Current-dollar disposable personal income (DPI), after-tax income, rose 0.3 percent in November, the same increase as in October.
Real DPI, income adjusted for taxes and inflation, increased 0.5 percent in November after increasing 0.3 percent in October.
Real consumer spending, spending adjusted for price changes, increased 0.7 percent in November after increasing 0.2 percent in October. Spending on durable goods increased 2.3 percent in November after increasing 0.4 percent in October. Purchases of motor vehicles and parts accounted for about half of the increase in November.
PCE prices decreased 0.2 percent in November after remaining flat in October. Excluding food and energy, PCE prices remained flat in November after increasing 0.2 percent in October.
Personal saving rate
Personal saving as a percent of DPI was 4.4 percent in November and 4.6 percent in October.
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State personal income growth averaged 1.0 percent in the third quarter of 2014, down from 1.2 percent in the second quarter. Growth in personal income–the sum of net earnings by place of residence, property income, and personal current transfer receipts–slowed in 38 states and in the District of Columbia. The percent change across states ranged from -0.2 percent in South Dakota (the only state with a decline) to 1.4 percent in Texas. Inflation, as measured by the national price index for personal consumption expenditures, slowed to 0.3 percent in the third quarter from 0.6 percent in the second quarter.
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Preliminary statistics on people’s incomes by state in the third quarter of 2014 will be released Friday, Dec. 19 by the U.S. Bureau of Economic Analysis (BEA).
These state personal income statistics will provide BEA’s first look at state economies for the July-September quarter of 2014 and serve as a basis for government and business decision making. For example:
- Federal government agencies use state personal income statistics to allocate funds and determine matching grants to states. The statistics are also used in forecasting models to project energy and water use.
- State governments use the statistics to project tax revenues and demand for public services.
- Academic regional economists use the statistics for applied research.
- Businesses, trade associations, and labor organization use the statistics for market research.
As part of this report, BEA will release revised statistics for the first two quarters of 2014.