August 2011 Personal Income and Outlays, Retail Sales and Consumer Debt

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Bureau of Economic Analysis data showed that personal income decreased $7.3 billion (0.1 percent) and disposable personal income (DPI) decreased $5.0 billion (less than 0.1 percent) in August. It was the first income decline in nearly two years. Personal consumption expenditures (PCE) increased $22.7 billion (0.2 percent). Real (inflation-adjusted) DPI decreased 0.3 percent while real PCE decreased less than 0.1 percent.
 

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Retail sales were essentially unchanged in nominal terms during August. The “other” category exhibited the only increase (+0.2 percent), thanks to consumers spending more on essentials at gas stations and grocery stores. Excluding the volatile auto segment, retail sales rose 0.1 percent.
 

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Total consumer debt outstanding decreased in August, falling by a seasonally adjusted and annualized rate of 4.6 percent. The decrease was due entirely to seasonal adjustments, as the non-seasonally adjusted (NSA) monthly change was positive in both revolving and non-revolving debt. The overall NSA debt increase was broad based: only pools of securitized assets shrank.