Personal Income Increases in September, Following August’s -2.5% Decline

A closer look into the most recent data release from the Bureau of Economic Analysis (BEA) reveals that personal income increased to a seasonally adjusted annual rate (SAAR) of $19,804 billion in September. This is an increase of 0.9%, after a 2.5% decline in August, which was the result of the expiration of the $600.00 weekly unemployment supplement. The increase in personal income largely came from gains of proprietors’ income, compensation of employees and rental income. However, personal income from wages and salaries increased $74.5 billion (SAAR), as the economy continued to reopen. Real disposable income (that is income remaining after adjusting for taxes and inflation) inched up 0.7% in Septembre after a decline in August of 3.2%.