U.S. Personal Income decreased $3.21 trillion in April 2021

May 31, 2021

In April, personal income fell $3.21 trillion (13.1%) in the U.S, according to estimates released by the Bureau of Economic Analysis. Disposable personal income (DPI) decreased $3.22 trillion (14.6%) and personal consumption expenditures (PCE) climbed $80.3 billion (0.5%).

Real DPI declined 15.1% in April, and Real PCE fell 0.1% with goods decreasing 1.3% and services increasing 0.6%. The PCE price index rose 0.6%. The PCE price index less food and energy increased 0.7%.

The fall in personal income in April was primarily attributed to the decreases in government social benefits. There was also a decrease in “other” social benefits, reflecting a decrease in economic impact payments made to individuals from the American Rescue Plan Act of 2021. BEA also noted that, “Unemployment insurance also decreased, led by decreases in payments from the Pandemic Unemployment Compensation program.”

In April, the current dollar PCE increased by $80.3 billion which meant a $112.6 billion rise in spending for services versus a $32.3 billion decrease in spending for goods. Spending on recreation services, as well as food and lodging, were the two major drivers to the growth in services. A decline in nondurable goods was somewhat offset by a rise in durable items within goods. The decline in nondurable goods was broad, with food and drinks leading the way. The rise in durable goods was accounted for by an increase in motor vehicles and parts.

Personal outlays rose $82.8 billion in April while personal saving was $2.81 trillion, and the personal saving rate, personal saving as a percentage of disposable personal income, stood at 14.9%.

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.