Real Per-Capita Disposable Personal Income

Diagrams/Data

Diagrams and Data

Explore further current and historical data for Real Per-Capita Disposable Personal Income and how it relates to the Real GDP, the Productivity Index , and Real Personal Consumption Expenditures.


Current and Historical Data for Real Per-Capita Disposable Personal Income
Review the current and historical data for Real Per-Capita Disposable Personal Income by quarter at Economagic.com.


Real Per-Capita Disposable Personal Income and Real GDP: Annual Percent Change Relative to Same Period Last Year
Real per-capita disposable personal income is derived from real GDP, and so we would expect them to move together over time (unless there is a dramatic change in population or personal tax rates). In fact we can see in the diagram below that both tend to fall during recessions and rebound during the subsequent recovery. It is interesting to note that while the rate of economic growth (increases in real GDP) exceeded the rate of growth in real per-capita disposable personal income during the economic boom in much of the 1990's, during the recession in 2001 that relationship reversed itself, and incomes increased faster than the overall economy. One reason are tax cuts starting in 2001, and another is a higher savings rate due to lower consumer confidence and falling stock market indices.

Economagic.com provides a more complete collection of data for the following:
Real Per-Capita Disposable Personal Income I Real GDP


Real Per-Capita Disposable Personal Income and the Productivity Index: Annual Percent Change Relative to the Same Period Last Year
Productivity gains are a key reason for increases in real per-capita income and economic growth. For example, improvements in labor productivity (increased output per hour of labor) allow wages to rise without spurring accelerating inflation. You can see from the diagram below that generally the growth rate for real per-capita income moves with the growth rate for productivity. It is interesting to note that in the last 20 years productivity has fallen more sharply during periods of economic slowdown and recession than real per-capita income. Incomes tend to recover from recessions faster than the productivity index. One can see that productivity does not appear to explain trends in disposable personal income in 2001 and 2002, which increased due to large tax cuts.

Economagic.com provides a more complete collection of data for the following:
Real Per-Capita Disposable Personal Income I Major Sector Productivity Index


Real Per-Capita Disposable Personal Income and Personal Consumption Expenditures: Annual Percent Change Relative to Same Period Last Year
The greater percentage of real per-capita income in most countries is used for consumption spending rather than saving, with the percentage varying by culture and other factors. Thus we would expect to see real per-capita income and real personal consumption expenditures moving together over time. The percentage of income that is allocated to consumption spending depends in part on consumer confidence in the state of the economy. During strong economic times such as the mid-1980's and the mid- and late-1990's consumer confidence and stock market gains were both robust, causing growth rates in real consumption expenditures to exceed that of real per-capita income by a relatively large margin. This pattern generally reverses itself during periods of economic slowdown and recession, when declining consumer confidence can cause spending to fall faster than income. One can see in the diagram that the federal tax cuts helped to maintain strong consumer spending during the last recession.

Economagic.com provides a more complete collection of data for the following:
Real Per-Capita Disposable Personal Income I Real Personal Consumption Expenditures

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