PERSONAL INCOME AND OUTLAYS IMPROVING FOR HOLIDAY SALES
StockHotTips.com Hot Stock News & Alerts!
Wednesday December 23, 2009
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By Justin Handy
FIGURES FOR NOVEMBER 2009
In reading these figures keep in mind the following: CPI annual rate of inflation – the Government’s target measure – was 1.9 per cent in November, up from 1.5 per cent in October. However these figures do not include the two main sources of inflation, food and energy, the real rate of inflation is closer to 10%
Additionally Take these figures with a grain of salt, retailers added personnel for the holidays, let’s wait and see what happens after the holiday season passes.
These Current statistics are as released by the Federal Bureau of Economic analysis.
Personal income increased $49.7 billion, or 0.4 percent, and disposable personal income (DPI) increased $54.1 billion, or 0.5 percent, in November, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $47.9 billion, or 0.5 percent. In October, personal income increased $33.6 billion, or 0.3 percent, DPI increased $50.2 billion, or 0.5 percent, and PCE increased $63.5 billion, or 0.6 percent, based on revised estimates.
Real disposable income increased 0.2 percent in November, the same increase as in October. Real PCE increased 0.2 percent in November, compared with an increase of 0.4 percent in October. 2009
Wages and salaries
Private wage and salary disbursements increased $16.1 billion in November, compared with an increase of $3.2 billion in October. Goods-producing industries’ payrolls increased $0.4 billion, in contrast to a decrease of $2.0 billion; manufacturing payrolls increased $1.6 billion, in contrast to a decrease of $2.4 billion. Services-producing industries’ payrolls increased $15.7 billion, compared with an increase of $5.2 billion. Government wage and salary disbursements increased $1.7 billion, compared with an increase of $2.8 billion.
Other personal income
Supplements to wages and salaries increased $2.1 billion in November, compared with an increase of $1.6 billion in October.
Proprietors’ income increased $12.3 billion in November, compared with an increase of $14.8 billion in October. Farm proprietors’ income increased $7.0 billion, compared with an increase of $6.9 billion. Nonfarm proprietors’ income increased $5.3 billion, compared with an increase of $7.9 billion.
Rental income of persons increased $1.7 billion in November, compared with an increase of $2.2 billion in October. Personal income receipts on assets (personal interest income plus personal dividend income) increased $6.7 billion, compared with an increase of $6.6 billion. Personal current transfer receipts increased $11.3 billion, compared with an increase of $2.8 billion.
Contributions for government social insurance — a subtraction in calculating personal income — increased $2.3 billion in November, compared with an increase of $0.5 billion in October.
Personal current taxes and disposable personal income
Personal current taxes decreased $4.5 billion in November, compared with a decrease of $16.7 billion in October. Disposable personal income (DPI) — personal income less personal current taxes – increased $54.1 billion, or 0.5 percent, in November, compared with an increase of $50.2 billion, or 0.5 percent in October.
Personal outlays and personal saving
Personal outlays — PCE, personal interest payments, and personal current transfer payments – increased $45.7 billion in November, compared with an increase of $61.3 billion in October. PCE increased $47.9 billion, compared with an increase of $63.5 billion.
Personal saving — DPI less personal outlays — was $525.1 billion in November, compared with $516.7 billion in October. Personal saving as a percentage of disposable personal income was 4.7 percent in November, the same as in October. 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 http://www.bea.gov/national/nipaweb/Nipa-Frb.asp.
Real DPI, real PCE and price index
Real DPI — DPI adjusted to remove price changes — increased 0.2 percent in November, the same increase as in October.
Real PCE — PCE adjusted to remove price changes — increased 0.2 percent in November, compared with an increase of 0.4 percent in October. Purchases of durable goods increased 1.2 percent, compared with an increase of 2.5 percent. Purchases of nondurable goods increased 0.6 percent, compared with an increase of less than 0.1 percent. Purchases of services decreased 0.1 percent, in contrast to an increase of 0.2 percent.
PCE price index — The price index for PCE increased 0.2 percent in November, compared with an increase of 0.3 percent in October. The PCE price index, excluding food and energy, increased less than 0.1 percent, compared with an increase of 0.2 percent.
When adjusting for true inflation the picture isn’t as good as the government would like us to believe.
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