November's Personal Income, Disposable Income and Personal Spending came out today. All three are pretty self explanatory. These factors (especially spending is very important to the economy as in our current keynesian economy we need to drive spending to ensure growth. Personal income increased $42.3 billion or 0.3% from month to month (percent change down from October). Personal consumption or spending increased $43.3 billion or 0.4% from month to month (down from October in terms of percent change). Real disposable income was flat month over month in terms of percent change (still increased, just at the same rate).
Even though Personal Income, Disposable Income and Spending were all up, Personal Savings decreased showing a willingness to loosen up on the wallet. Personal savings is back on a decline as of November. Of course this make some sense as it is the Christmas spending season and Americans are feeling pent up from saving for the past 2 years. It will be interesting to see the next couple months as the tax extensions were extended to see if spending continues and savings persists its decline.
Percent change from preceding month in 2010
| Category | July | Aug | Sept | Oct | Nov |
|---|---|---|---|---|---|
| Personal income, current dollars | 0.1 | 0.5 | 0.0 | 0.4 | 0.3 |
| Disposable personal income: | |||||
| Current dollars | 0.0 | 0.4 | -0.1 | 0.3 | 0.3 |
| Chained (2005) dollars | -0.2 | 0.3 | -0.2 | 0.2 | 0.2 |
| Personal consumption expenditures: | |||||
| Current dollars | 0.3 | 0.5 | 0.3 | 0.7 | 0.4 |
| Chained (2005) dollars | 0.1 | 0.3 | 0.2 | 0.5 | 0.3 |
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