The U.S. Bureau of Economic Analysis has reported that personal income dipped 0.1 percent in August 2011, while consumer spending increased 0.2 percent. Manufacturing payrolls declined by $2.9 billion as the economic and political turmoil in August may have caused businesses to cut back on production. The follow-on to the consumer may have yet to be seen.
Here is the full BEA press release:
PERSONAL INCOME AND OUTLAYS: AUGUST 2011
Personal income decreased $7.3 billion, or 0.1 percent, and disposable personal income (DPI)
decreased $5.0 billion, or less than 0.1 percent, in August, according to the Bureau of Economic
Analysis. Personal consumption expenditures (PCE) increased $22.7 billion, or 0.2 percent. In July,
personal income increased $17.1 billion, or 0.1 percent, DPI increased $14.4 billion, or 0.1 percent,
and PCE increased $76.6 billion, or 0.7 percent, based on revised estimates.
Real disposable income decreased 0.3 percent in August, compared with a decrease of 0.2
percent in July. Real PCE decreased less than 0.1 percent, in contrast to an increase of 0.4 percent.
2011
Apr. May June July Aug.
(Percent change from preceding month)
Personal income, current dollars 0.4 0.3 0.2 0.1 -0.1
Disposable personal income:
Current dollars 0.3 0.2 0.1 0.1 0.0
Chained (2005) dollars 0.0 0.0 0.3 -0.2 -0.3
Personal consumption expenditures:
Current dollars 0.3 0.2 -0.2 0.7 0.2
Chained (2005) dollars -0.1 0.0 -0.1 0.4 0.0
Wages and salaries
Private wage and salary disbursements decreased $12.2 billion in August, in contrast to an increase
of $23.8 billion in July. Goods-producing industries' payrolls decreased $1.3 billion, in contrast to an
increase of $6.3 billion; manufacturing payrolls decreased $2.9 billion, in contrast to an increase of $5.8 billion.
Services-producing industries' payrolls decreased $10.9 billion, in contrast to an increase of $17.5 billion.
Government wage and salary disbursements increased $0.4 billion, in contrast to a decrease of $1.8 billion.
Other personal income
Supplements to wages and salaries increased $1.1 billion in August, compared with an increase of $3.3 billion in July.
Proprietors' income increased $6.5 billion in August, compared with an increase of $3.1 billion in July. Farm
proprietors' income increased $0.7 billion, compared with an increase of $0.8 billion. Nonfarm proprietors'
income increased $5.7 billion, compared with an increase of $2.5 billion.
Rental income of persons increased $8.3 billion in August, compared with an increase of $8.1 billion in July.
Personal income receipts on assets (personal interest income plus personal dividend income) decreased $5.7 billion,
compared with a decrease of $5.8 billion.
Personal current transfer receipts decreased $7.1 billion in August, compared with a decrease of $10.7 billion
in July. Government social benefits to persons for Medicaid decreased $10.5 billion, compared with a decrease of $13.6 billion.
Contributions for government social insurance -- a subtraction in calculating personal income -- decreased $1.3 billion
in August, in contrast to an increase of $3.0 billion in July.
Personal current taxes and disposable personal income
Personal current taxes decreased $2.3 billion in August, in contrast to an increase of $2.7 billion in July.
Disposable personal income (DPI) -- personal income less personal current taxes -- decreased $5.0 billion, or
less than 0.1 percent, in August, in contrast to an increase of $14.4 billion, or 0.1 percent in July.
Personal outlays and personal saving
Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $26.3 billion in August,
compared with an increase of $80.2 billion in July. PCE increased $22.7 billion, compared with an increase of $76.6 billion.
Personal saving -- DPI less personal outlays -- was $519.3 billion in August, compared with $550.5 billion in July.
Personal saving as a percentage of disposable personal income was 4.5 percent in August, compared with 4.7 percent in July.
For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal
Reserve Board’s flow of funds accounts and data on changes in net worth, go to www.bea.gov/national/nipaweb/Nipa-Frb.asp.
Real DPI, real PCE and price index
Real DPI -- DPI adjusted to remove price changes -- decreased 0.3 percent in August, compared with a decrease of 0.2 percent in July.
Real PCE -- PCE adjusted to remove price changes -- decreased less than 0.1 percent in August, in contrast to an increase
of 0.4 percent in July. Purchases of durable goods increased 0.1 percent, compared with an increase of 2.2 percent.
Purchases of nondurable goods decreased 0.4 percent, compared with a decrease of 0.5 percent. Purchases of services increased
0.1 percent, compared with an increase of 0.4 percent.
PCE price index -- The price index for PCE increased 0.2 percent in August,compared with an increase of 0.4 percent in July.
The PCE price index, excluding food and energy, increased 0.1 percent, compared with an increase of 0.2 percent.
Revisions
Estimates have been revised for April through July. Changes in personal income, current-dollar
and chained (2005) dollar DPI, and current-dollar and chained (2005) dollar PCE for June and July -- revised and as
published in last month's release -- are shown below.
Change from preceding month
June July
Previous Revised Previous Revised Previous Revised Previous Revised
(Billions of dollars) (Percent) (Billions of dollars) (Percent)
Personal Income:
Current dollars 27.7 21.3 0.2 0.2 42.4 17.1 0.3 0.1
Disposable personal income:
Current dollars 22.6 15.4 0.2 0.1 32.5 14.4 0.3 0.1
Chained (2005) dollars 32.9 26.4 0.3 0.3 -9.3 -24.7 -0.1 -0.2
Personal consumption expenditures:
Current dollars -14.3 -21.7 -0.1 -0.2 88.4 76.6 0.8 0.7
Chained (2005) dollars -0.6 -7.3 0.0 -0.1 42.9 32.8 0.5 0.4
BEA’s national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases
are available without charge on BEA's Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free
e-mail summaries of BEA releases and announcements.
* * *
Next release - October 28, 2011 at 8:30 A.M. EDT for Personal Income and Outlays for September.
________________________
Gregg D. Killoren
victoria1014
