January 2012 Personal Income and Outlays, Retail Sales and Consumer Debt

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Bureau of Economic Analysis data showed that personal income increased $37.4 billion (0.3 percent), and disposable personal income (DPI) increased $14.1 billion (0.1 percent) in January. Personal consumption expenditures (PCE) increased $23.2 billion (0.2 percent). Real (inflation-adjusted) DPI decreased 0.1 percent while real PCE increased less than 0.1 percent.
 

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Consumers bumped up spending on retail goods in January by a seasonally adjusted 0.4 percent, with gains concentrated in the “other” and food service sectors; the vehicle category fell by 1.1 percent. Interestingly, January’s retail sales rise appears to have been largely a result of the Census Bureau’s seasonal adjustments, since unadjusted sales plunged from $459.8 billion in December to $361.4 billion in January, or -$98.5 billion in one month -- the biggest one month drop in retail sales in history.
 

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Total consumer debt outstanding increased substantially again in December, rising by a seasonally adjusted $17.8 billion (8.6 percent annualized). Revolving (mostly credit card) debt fell by $2.9 billion (4.4 percent annualized), while non-revolving debt (mainly student and auto loans) shot up by $20.7 billion (14.7 percent annualized). Student loans comprised almost 85 percent of the gain in the non-revolving loan category.