Friday, October 31, 2008

Real Per Capita Disposable Income Biggest Drop Since 1949

While the media is celebrating the fact that:

Personal income increased $24.5 billion, or 0.2 percent, and disposable personal income (DPI) increased $25.7 billion, or 0.2 percent, in September, according to the Bureau of Economic Analysis.
Real per capita disposable income showed its largest decline since 1949, dropping 9.6% in the quarter (line 37) following Q2's tax rebate.


In fact, following the big bounce in May, we experienced 3 straight down months, followed by September's flat level. No wonder people aren't spending!