by Calculated Risk on 11/01/2010 08:30:00 AM
Monday, November 01, 2010
From the BEA: Personal Income and Outlays, June 2010
Personal income decreased $16.8 billion, or 0.1 percent, and disposable personal income (DPI) decreased $20.3 billion, or 0.2 percent, in September ... Personal consumption expenditures (PCE) increased $17.3 billion, or 0.2 percent.Click on graph for large image.
Real PCE -- PCE adjusted to remove price changes -- increased 0.1 percent in September, compared with an increase of 0.3 percent in August.
Personal saving as a percentage of disposable personal income was 5.3 percent in September, compared with 5.6 percent in August.
This graph shows real personal income less transfer payments since 1969.
This measure of economic activity is moving sideways - similar to what happened following the 2001 recession.
This month the saving rate decreased ...
This graph shows the saving rate starting in 1959 (using a three month trailing average for smoothing) through the Setpember Personal Income report.
In September, income declined 0.1%, and spending increased 0.2% - so the saving rate decreased to 5.3% in September (5.5% using a three month average).
I expect the saving rate to rise some more over the next year, perhaps to 8% or so - keeping the pace of PCE growth below income growth.
Posted by Calculated Risk on 11/01/2010 08:30:00 AM