Archive for November, 2013

Personal Income Increases in September

pi_11_08_1Personal income rose 0.5 percent in September, the same as in August. Wages and salaries, the largest component of personal income, rose 0.4 percent after rising 0.5 percent. Farm proprietors’ income was boosted in September, reflecting the settlement of a class-action discrimination lawsuit against the U. S. Department of Agriculture.

Current-dollar disposable personal income (DPI), after-tax income, rose 0.5 percent in September.

Real DPI, income adjusted for taxes and inflation, rose 0.4 percent in September.

Real consumer spending, spending adjusted for price changes, increased 0.1 percent in September after increasing 0.2 percent in August. Spending on durable goods turned down.

pi_11_08_2PCE prices rose 0.1 percent in September, the same as in August. Excluding food and energy, PCE prices increased 0.1 percent in September, the same as in August.

Personal saving rate
Personal saving as a percent of DPI was 4.9 percent in September and 4.7 percent in August.

To learn more about personal income and outlays, read the full report.

GDP Growth Picks Up in Third Quarter

Real gross domestic product (GDP) increased 2.8 percent in the third quarter of 2013, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, the growth rate was 2.5 percent.

GDP growthgdp_11_7_1
The third-quarter growth reflected the following:
• Imports decelerated. Nonauto consumer goods turned down, and autos and auto parts decelerated. In contrast, nonpetroleum industrial supplies turned up.
• Inventory investment picked up. Wholesale trade, especially durable goods, more than accounted for the pick up. Manufacturing inventory investment also accelerated.
• State and local government spending accelerated. Investment in structures turned up.

In contrast, the following decelerated in the third quarter: exports (mainly nonauto consumer goods and nonauto capital goods), business investment (mainly information processing equipment), and consumer spending (mainly housing and utilities as well as health care).

Personal income and personal saving
Real disposable personal income (DPI), which adjusts for taxes and inflation, increased 2.5 percent in the third quarter after increasing 3.5 percent in the second quarter. The slowdown in real DPI reflected an upturn in consumer prices that was partly offset by an acceleration in current-dollar DPI.

Personal saving as a percent of DPI was 4.7 percent in the third quarter, compared with 4.5 percent in the second quarter.

Prices of goods and services purchased by U.S. residents accelerated in the third quarter, increasing 1.8 percent after increasing 0.2 percent in the second quarter.

Energy goods and services prices turned up, accounting for much of the third-quarter pickup in gross domestic purchases prices. In particular, consumer spending on gasoline and other energy goods turned up.

Food prices accelerated modestly.

Prices less food and energy increased 1.5 percent after increasing 0.8 percent.

For more on GDP, read the full report.

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