(January 31, 2008) – The December Personal Income and Outlays Report, released today, shows that personal income increased $55.1 billion, or 0.5 percent, and disposable personal income (DPI) increased $47.5 billion, or 0.5 percent. Personal consumption expenditures (PCE) increased $23.5 billion, or 0.2 percent. In November, personal income increased $47.6 billion (0.4%), DPI increased $37.6 billion (0.4%), and PCE increased $94.6 billion (1.0%).
Of the $129.1 billion increase in personal income in Q4/07, $84.8 billion was employee compensation, $8.6 net proprietors’ income, $7.6 billion was net rental income, and $23.4 billion was personal income from assets. The latter included a $21.6 billion increase in dividend income.
Dividend income in Q4/07 was measured at an $833.7 billion annual rate–more than double the $410.0 billion annual rate in Q4/02 before the 2003 dividend tax cut. Dividends grew at an 11.2% annual rate in Q4/07, 13.8% for the full year 2007, and 16.3% in 2006. Thank you dividend tax cut!
Even after a $22.3 billion increase in taxes paid to the damned government, disposable personal income–our walking around money–increased $106.8 billion. Even real personal disposable income was up (a little), no mean feat in a world of screaming oil and commodity prices.
JR
