Posted on October - 30 - 2010

Personal income declined somewhat in September

Personal income declined somewhat in September

Nationwide personal income decreased $16.8 billion, just 0.1 percent, in September from the rate observed in August, according to the latest figures from the Economics and Statistics Administration. Meanwhile, disposable personal income dropped $20.3 billion, or 0.2 percent. In addition, personal consumption expenditures climbed $17.3 billion, or 0.2 percent.

This came after an August that saw sizeable increases in income and disposable income, as well as a slightly sharper jump in personal consumption, the report said.

This marked the first decline in personal income since April, the report said. While June saw no improvements, there were somewhat significant increases in May, July and August.

Private wage and salary disbursements increased $3.3 billion in September, up slightly from a far steeper increase of $23.6 billion in August, the report said. Salaries from goods-producing industries, manufacturing and the government all saw some decreases, while the services-producing sectors saw payrolls climb $5 billion. However, even that improvement was down significantly from the prior month, when wages for the industry increased $16.8 billion.

Consumers have been more conscious of their finances in the months since the recession hit, and many have been able to increase their personal savings while decreasing spending.

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