Consumer Income Falls

Personal income decreased $16.8 billion, or 0.1 percent, and disposable personal income (DPI)
decreased $20.3 billion, or 0.2 percent, in September, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $17.3 billion, or 0.2 percent.  In August,
personal income increased $54.4 billion, or 0.4 percent, DPI increased $47.9 billion, or 0.4 percent,
and PCE increased $52.5 billion, or 0.5 percent, based on revised estimates.

Real disposable income decreased 0.3 percent in September, in contrast to an increase of 0.2
percent in August.  Real PCE increased 0.1 percent, compared with an increase of 0.3 percent.

                                        2010
                                        May             June            July            Aug.            Sept.
                                                       (Percent change from preceding month)
Personal income, current dollars        0.4             0.0             0.2             0.4            -0.1
Disposable personal income:
 Current dollars                        0.4             0.0             0.0             0.4            -0.2
 Chained (2005) dollars                 0.4             0.2            -0.2             0.2            -0.3
Personal consumption expenditures:
 Current dollars                        0.2             0.0             0.5             0.5             0.2
 Chained (2005) dollars                 0.3             0.1             0.2             0.3             0.1

The September change in personal income reflects provisions of unemployment compensation legislation,
which had boosted emergency government unemployment benefits (within current transfer receipts) in August.
Excluding emergency government unemployment insurance benefits, which are discussed more fully below,
personal income increased $8.7 billion, or 0.1 percent, in September, following an increase of $33.9 billion,
or 0.3 percent, in August.

Coal in the stocking this year.

Douglas A. McIntyre