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Category: Personal Income and Spending
Last Updated: 19 May 2020 This page is dedicated to focusing on the personal income and expenses of citizens in the United States, and the bulk of the data is obtained from the Bureau of Economic Analysis. The page will be updated on ad hoc basis as more data becomes available
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19 May 2020: Real Personal Income by State and Metropolitan Area, 2018
Real state personal income grew 3.4 percent in 2018, after increasing 2.9 percent in 2017, according to estimates released yesterday (18 May 2020) by the Bureau of Economic Analysis. Real state personal income is a state's current-dollar personal income adjusted by the state's regional price parity and the national personal consumption expenditures price index. The percent change in real state personal income ranged from 6.7 percent in Wyoming to 0.9 percent in Mississippi. Across metropolitan areas, the percent change ranged from 15.6 percent in Midland, TX to -1.1 percent in Sebring-Avon Park, FL
Real Personal Income in 2018
- States with the fastest growth in real personal income were Wyoming (6.7 percent), Colorado (5.3 percent), and South Dakota (5.0 percent).
- No state had a decline in real personal income. States with the slowest growth in real personal income were Mississippi (0.9 percent), Kentucky (1.4 percent), and New Jersey (1.9 percent).
- Large metropolitan areas—those with population greater than two million—with the fastest growth in real personal income were Austin-Round Rock-Georgetown, TX (6.1 percent), Denver-Aurora-Lakewood, CO (5.7 percent), and Seattle-Tacoma-Bellevue, WA (5.2 percent).
- The large metropolitan areas with the slowest growth in real personal income were Sacramento-Roseville-Folsom, CA (2.3 percent), New York-Newark-Jersey City, NY-NJ-PA (2.5 percent), and Cleveland-Elyria, OH (2.6 percent).
8 May 2020: Household spending for July 2019 compared to July 2018
We take a look at average household spending growth through the period July 2018 to July 2019 as published by the Bureau of Labor Statistics. Below the numbers from the BLS:
Average household spending for July 2018 through June 2019 was up 2.7 percent compared with the July 2017 through June 2018 average. During the same period, the Consumer Price Index (CPI-U) rose 2.1 percent.
Among the components of total expenditures, education spending decreased 7.1 percent for the 12 months ending June 2019. This was due to decreases in elementary and high school tuition and expenditures for finance, late, and interest charges on student loans
Average household spending for July 2018 through June 2019 was up 2.7 percent compared with the July 2017 through June 2018 average. During the same period, the Consumer Price Index (CPI-U) rose 2.1 percent.
Among the components of total expenditures, education spending decreased 7.1 percent for the 12 months ending June 2019. This was due to decreases in elementary and high school tuition and expenditures for finance, late, and interest charges on student loans
A 6.9-percent increase in transportation spending was the largest among major components of household spending for the 12 months ending June 2019. Within the personal insurance and pensions component, spending on life and other personal insurance increased 15.7 percent.
For the 12 months ending June 2019, spending by households with the lowest 20 percent of income increased 6.4 percent, the largest increase for any income group. Spending on education increased 23.1 percent for households in the third 20 percent of income, while decreasing 25.5 percent for those in the lowest 20 percent. Compared with households in all other income groups, those with the lowest 20 percent of income had the largest percentage increase in spending on food at home (11.3 percent) and away from home (6.1 percent), housing (7.5 percent), transportation (22.9 percent), and healthcare (8.9 percent).
For the 12 months ending June 2019, spending by households with the lowest 20 percent of income increased 6.4 percent, the largest increase for any income group. Spending on education increased 23.1 percent for households in the third 20 percent of income, while decreasing 25.5 percent for those in the lowest 20 percent. Compared with households in all other income groups, those with the lowest 20 percent of income had the largest percentage increase in spending on food at home (11.3 percent) and away from home (6.1 percent), housing (7.5 percent), transportation (22.9 percent), and healthcare (8.9 percent).
3 May 2020: Personal Income and Outlays for March 2020
Personal income decreased $382.1 billion (2.0 percent) in March according to estimates released today by the Bureau of Economic Analysis). Disposable personal income (DPI) decreased $334.6 billion (2.0 percent) and personal consumption expenditures (PCE) decreased $1,127.3 billion (7.5 percent). Real DPI decreased 1.7 percent in March and Real PCE decreased 7.3 percent . The PCE price index decreased 0.3 percent. Excluding food and energy, the PCE price index decreased 0.1 percent
Coronavirus (COVID-19) Impact on March 2020 Personal Income and Outlays
The decline in March personal income and outlays was, in part, due to the response to the spread of COVID-19, as governments issued “stay-at-home” orders. This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending. The full economic effects of the COVID-19 pandemic cannot be quantified in the Personal Income and Outlays estimate for March 2020 because the impacts are generally embedded in source data and cannot be separately identified.
Coronavirus (COVID-19) Impact on March 2020 Personal Income and Outlays
The decline in March personal income and outlays was, in part, due to the response to the spread of COVID-19, as governments issued “stay-at-home” orders. This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending. The full economic effects of the COVID-19 pandemic cannot be quantified in the Personal Income and Outlays estimate for March 2020 because the impacts are generally embedded in source data and cannot be separately identified.
The decrease in personal income in March primarily reflected a decrease in compensation. The estimate of private wages and salaries was primarily based on data from the Bureau of Labor Statistics monthly Current Employment Statistics report as well as unemployment insurance claims data from the Department of Labor’s Employment and Training Administration. For more information, see “How did BEA adjust March 2020 wages and salaries to account for the effects of COVID-19?”.
The decrease in real PCE in March reflected a decrease of $829.9 billion in spending for services and a $104.9 billion in spending for goods. Within services, the leading contributor to the decrease was spending on health care, including physician, dental, and paramedical services. Other contributors to the decrease in services were spending on food services and accommodations as well as recreation services. Within goods, the leading contributor to the decrease was spending on motor vehicles and parts. Partially offsetting the decreases in many categories of spending on goods was an increase in spending for food and beverages purchased for off-premises consumption.
Lets take a look at the household expenditure per main expenditure category in the United States for March 2020, ranked from highest spending category to lowest:
The decrease in real PCE in March reflected a decrease of $829.9 billion in spending for services and a $104.9 billion in spending for goods. Within services, the leading contributor to the decrease was spending on health care, including physician, dental, and paramedical services. Other contributors to the decrease in services were spending on food services and accommodations as well as recreation services. Within goods, the leading contributor to the decrease was spending on motor vehicles and parts. Partially offsetting the decreases in many categories of spending on goods was an increase in spending for food and beverages purchased for off-premises consumption.
Lets take a look at the household expenditure per main expenditure category in the United States for March 2020, ranked from highest spending category to lowest:
- Health $2 525 943 000 000 (20.9% of total spending)
- Housing, utilities, and fuels $2 230 028 000 000 (18.5%)
- Food and beverages purchased for off-premises consumption $1 177 485 000 000 (9.8%)
- Recreation $1 168 714 000 000 (9.7%)
- Transportation $1 131 884 000 000 (9.4%)
- Financial services and insurance $873 798 000 000 (7.2%)
- Other goods and services $742 625 000 000 (6.2%)
- Food services and accommodations $640 967 000 000 (5.3%)
- Furnishings, household equipment, and routine household maintenance $617 020 000 000 (5.1%)
- Communication $388 439 000 000 (3.2%)
- Clothing, footwear, and related services $302 985 000 000 (2.5%)
- Education $262 126 000 000 (2.2%)