New BEA Report: Personal Income Inched Up in July
According to reports released today by the Bureau of Economic Analysis, national personal income increased by $42.4 billion – or 0.3% - in July compared to June. Personal consumption also went up in July, increasing by 0.8%. Growth rates in July were similar to those in June, when personal income increased $27.7 billion, or 0.2%, and personal consumption was up 0.1%. Personal income was up 5% over July 2010.
Per capita personal income in current dollars was $37,282 in July, up slightly from $37,204 in June. Year-over-year, per capita personal income was up 3.1% in July in current dollars. Looking at the change from July 2010 to July 2011 in per capita personal income using chained 2005 dollars (which allows us better compare values over time), we find that change was closer to 0.4%.
Per capita personal income varies significantly across states, ranging from a low of $31,186 in Mississippi to a high of $56,001 in Connecticut
Per Capita Personal Income, 2010
Data Source: Bureau of Economic Analysis
What is Personal Income?
Personal income is a commonly used indicator to evaluate economic well-being. It includes income that is received by people from participation in production, from government and business transfer payments, and from government interest (which is treated like a transfer payment).
Personal income has four major components—employee compensation, including wages and salaries and employer contributions for pensions and government social insurance; rental income; personal income receipts on assets, which includes interest and dividend income; and personal current transfer receipts, which includes government benefits like Social Security, Medicare, Medicaid, unemployment insurance and veteran’s benefits. For more information, visit www.bea.gov.