Sunday, October 9, 2011

USA Personal Income Decreases (Charts) *Wages & salaries lower*


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Bureau of Economic Analysis: Monthly Personal Income and Outlays


Official Statement by the U.S. Bureau of Economic Analysis (September 30, 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.

Personal Income and Disposable Personal Income (Chart) (Seasonally adjusted at annual rates) Below is a chart of Personal Income and Disposable Personal Income, which are above the Pre-Great Recession peaks. Both have leveled off the past 3 months. Personal Income is growing at a faster rate than Disposable Personal Income. Current Personal Income of $13.03 trillion (preliminary) is just below the July 2011 Post-Great Recession high of $13.04 trillion. The Great Recession low was $11.86 trillion in July 2009. The Pre-Great Recession peak was $12.64 trillion in May 2008. Current Disposable Personal Income of $11.619 trillion (preliminary) is also just below the July 2011 Post-Great Recession high of $11.624 trillion. The Great Recession low was $10.71 trillion in March 2009. The Pre-Great Recession peak was $11.48 trillion in May 2008. Personal Income is all the personal income in the USA: employee compensation, proprietors' income, rentals, interest, dividends, government social benefits, and business benefits. Disposable Personal Income is Personal Income less personal income taxes.


Wage and Salary Disbursements (Chart) (Seasonally adjusted at annual rates) Below is a chart of Wages and Salaries, which is above the Pre-Great Recession peak. Current Wage and Salary Disbursements of $6.68 trillion (preliminary) is just below the July 2011 Post-Great Recession high of $6.69 trillion. The Great Recession low was $6.24 trillion in March 2009. The Pre-Great Recession peak was $6.62 trillion in March 2008. Wage and Salary Disbursements is a sub-category of Compensation of Employees and does not include employer contributions for employee pension and insurance funds and employer contributions for government social insurance.


Private Industries Wage and Salary Disbursements (Chart) (Seasonally adjusted at annual rates) Below is a chart of Private Industries Wages and Salaries, which is above the Pre-Great Recession peak. Current Private Industries Wage and Salary Disbursements of $5.487 trillion (preliminary) is just below the July 2011 Post-Great Recession high of $5.4995 trillion. The Great Recession low was $5.07 trillion in March 2009. The Pre-Great Recession peak was $5.48 trillion in March 2008. Private Industries Wage and Salary Disbursements is a sub-category of Wage and Salary Disbursements (see chart above) and does not include Government Wage and Salary Disbursements (see chart further below).


Government Wage and Salary Disbursements (Chart) (Seasonally adjusted at annual rates) Below is a chart of Government Wage and Salary Disbursements, which has peaked and trending downwards. Current Government Wage and Salary Disbursements of $1,189.7 billion (preliminary) is below the recent high of $1,192.5 billion in April 2011. The Post-Great Recession peak was $1.2005 trillion in May 2010, which was attributable to the 2010 census. Government Wage and Salary Disbursements grew through the Great Recession. Government Wage and Salary Disbursements is a sub-category of Wage and Salary Disbursements (see chart above) and does not include Private Industries Wage and Salary Disbursements (see chart above).


Commentary August 2011 Personal Income and Personal Disposable Income (preliminary) both dipped to just below the July 2011 Post-Great Recession highs. Increases in proprietors' income, rental income, dividend income, government social benefits, and business benefits were less than decreases in compensation of employees, interest income and increases in personal taxes. The trend is of concern due to the dip in compensation of employees and especially the sub-category private industries wage and salary disbursements. The BEA further commented, "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.

About the Bureau of Economic Analysis
Mission: The Bureau of Economic Analysis (BEA) promotes a better understanding of the U.S. economy by providing the most timely, relevant, and accurate economic accounts data in an objective and cost-effective manner. Vision: To be the world's most respected producer of economic accounts.

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