With all the signs pointing to explosive economic growth in 2020, economists are generally predicting a growth rate greater than 5%, the news that personal income fell by $1,516.6 billion (7.1%) from January to February is a pretty dire data point.
Obviously, there were some freak conditions in February, the massive Texas blackouts come to mind, but this is pretty grim news:
Hence, when the opening line of the press release for this report tell us “Personal income decreased $1,516.6 billion (7.1 percent) in February“, that means that the annualized figure for US personal income in February, $19,945.6 billion, was $1,516.6 billion, or roughly 7.1% less than the annualized personal income figure of $21,462.2 billion for January; the actual change in personal income from January to February is not provided…similarly, annualized disposable personal income, which is income after taxes, fell by nearly 8.0%, from an annual rate of an annual rate of $19,210.5 billion in January to an annual rate of $17,678.2 billion in February…the components of the monthly decrease in personal income, which can be seen in the Full Release & Tables (PDF) for this release, are also annualized figures…in February, the reason for the $1,516.6 billion annualized decrease in personal income was a $1,584.1 billion annualized decrease in government social benefits to individuals, which was only slightly offset by a $37.7 billion annualized increase in business & farm proprietors’ income and a $15.6 billion annualized increase in interest and dividend income…wages and salaries, which fell by an annualized $0.2 billion, were barely a factor in February’s personal income change . . .
Not great economic news.
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