U.S. Personal Savings Rate on the Rise

June 26, 2009:  Today, the U.S. Department of Commerce's Bureau of Economic Analysis released it's latest study of personal income and outlays. Among the BEA findings: personal saving as a percentage of disposable personal income rose to 6.9% in May 2009, compared with 5.6% a month earlier.

The rate of personal savings stands at the highest point since third quarter 2001. For the third quarter of 2005, the rate of personal savings went negative.

According to the report, real disposable income (DPI) increased 1.6% in May, compared with an increase of 1.2% in April. Real personal consumption expenditures (PCE) increased 0.2%, in contrast to a decrease of 0.1% in April. The gain in DPI was attributed to the result of provisions of the American Recovery and Reinvestment Act of 2009 which reduced personal current taxes and increased government social benefit payments.

Private wage and salary disbursements decreased $12.4 billion in May, compared with a decrease of $0.7 billion in April.
Goods-producing industries' payrolls decreased $12.9 billion, compared with a decrease of $12.2 billion; manufacturing payrolls decreased $9.8 billion, compared with a decrease of $4.9 billion. Services-producing industries' payrolls increased $0.5 billion, compared with an increase of $11.5 billion. Government wage and salary disbursements increased $3.9 billion, compared with an increase of $5.7 billion.  Supplements to wages and salaries increased $3.3 billion in May, compared with an increase of $3.9 billion in April.

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Posted by Mark Rodrigues at 6/30/2009 8:04 AM
Categories: Deposits
 

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