Friday, May 3, 2013

Nat'l personal income growth drops to 3-year low

Colorado's economy appears to be outpacing the national economy in a variety of indicators right now. Let's have a look at national personal income growth to check in on the nat'l scene. The BEA released some new numbers on personal income on Monday. The numbers show that year-over-year growth in personal income dropped to the smallest growth rate (2.5 percent) seen since the first quarter of 2010:

Measured quarter-to-quarter, the growth rate turned negative for the first time since the third quarter of 2009. The growth rate was neg 0.7 percent.

The overall personal income total measures income of all types. If we isolate the income the comes from compensation to employees, we find that compensation also dropped to an almost 3-year low (the lowest since the 2nd Q of 2010):

The growth in compensation was 2.8 percent , year over year. 

These are seasonally-adjusted annualized numbers.