Income & Saving

Personal income increased$70.7 billion, or 0.3 percent at a monthly rate, while consumer spending decreased$95.2 billion, or 0.6 percent, in December. The increase in personal income primarily reflected an increase in compensation of employees. The personal saving rate (that is, personal saving as a percentage of disposable personal income) was 7.9 percent in December, compared with 7.2 percent in November.

Personal income increased$90.4 billion, or 0.4 percent at a monthly rate, while consumer spending increased$104.7 billion, or 0.6 percent, in November. The increase in personal income primarily reflected increases in compensation of employees and government social benefits. The personal saving rate (that is, personal saving as a percentage of disposable personal income) was 6.9 percent in November, compared with 7.1 percent in October.

State personal income increased 2.6 percent at an annual rate in the third quarter of 2021 after decreasing 20.2 percent in the second quarter. The percent change in personal income across all states ranged from 6.7 percent in the Kentucky to –4.3 percent in North Dakota. Personal income estimates reflect the continued economic impacts related to the COVID-19 pandemic. Government pandemic assistance payments to households and business decreased. The full economic effects of the COVID-19 pandemic cannot be quantified in the state personal income estimates because the impacts are generally embedded in source data and cannot be separately identified.

In 2020, personal income increased in 3,040 counties, decreased in 69, and was unchanged in 3. Personal income increased 6.4 percent in the metropolitan portion of the United States and increased 7.6 percent in the nonmetropolitan portion. Personal income estimates were impacted by the response to the spread of COVID-19, as governments issued and lifted “stay-at-home” orders. The full economic effects of the COVID-19 pandemic cannot be quantified in the local area personal income estimates, because the impacts are generally embedded in source data and cannot be separately identified.

State personal income decreased 21.8 percent at an annual rate in the second quarter of 2021 after increasing 56.9 percent in the first quarter. In the second quarter of 2021, the decrease in transfer receipts was the leading contributor to personal income declines in all 50 states and the District of Columbia. The percent change in personal income across all states ranged from –10.1 percent in the District of Columbia to –34.0 percent in West Virginia.

Personal income increased$225.9 billion, or 1.1 percent at a monthly rate, while consumer spending increased$42.2 billion, or 0.3 percent, in July. Compensation increased and new advance Child Tax Credit payments, authorized by the American Rescue Plan, began in July. In addition to presenting estimates for July 2021, these highlights provide comparisons to February 2020, the last month before the onset of the COVID-19 pandemic in the United States. For more information, see Federal Recovery Programs and BEA Statistics.

Personal income for July 2021

Personal income increased $26.1 billion, or 0.1 percent at a monthly rate, while consumer spending increased $155.4 billion, or 1.0 percent, in June. Compensation increased in June while pandemic related assistance programs declined. In addition to presenting estimates for June 2021, these highlights provide comparisons to February 2020, the last month before the onset of the COVID-19 pandemic in the United States. For more information, see Federal Recovery Programs and BEA Statistics.

Personal income decreased $414.3 billion, or 2.0 percent at a monthly rate, while consumer spending increased $2.9 billion, or less than 0.1 percent, in May. The decrease in personal income reflected declines in pandemic-related assistance programs. In addition to presenting estimates for May 2021, these highlights provide comparisons to February 2020, the last month before the onset of the COVID19 pandemic in the United States. For more information, see Federal Recovery Programs and BEA Statistics.

Real gross domestic product (GDP) increased at an annual rate of 6.4 percentin the first quarter of 2021, reflecting the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19pandemic. The increase was the same rate as the “second” estimate released in May.

State personal income increased 59.7 percent at an annual rate in the first quarter of 2021 after decreasing 3.9 percent in the fourth quarter of 2020. In the first quarter of 2021, the increase in transfer receipts was the leading contributor to personal income growth in all states and the District of Columbia. The percent change in personal income ranged from 89.3 percent in Mississippi to 31.1 percent in the District of Columbia.