Data recently released by the Bureau of Economic Analysis (BEA) is reporting that personal income surged in April to a seasonally adjusted annual rate (SAAR) of $ 20,674 billion. The 10.5% increase in personal income was largely the result of the Federal Pandemic Response Program. Real disposable income (income remaining after adjusting for taxes and inflation) was up 13.4% after a -1.8% loss in March. Personal consumption expenditures (PCE) plunged -13.6% in April, the steepest decline since 1959. On the positive side in April, the rise in personal income and the drop in consumer spending pushed the personal savings rate to 33%. Personal savings increased to $6.15 billion (SAAR), almost triple the amount of savings in March. This record high savings rate reflects a slowdown in spending and economic growth during the COVID-19 pandemic.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Personal Income and Outlays: April 2020