The latest report on personal income growth shows that our income has risen for the second month in a row. In a report released on March 1, the Bureau of Economic Analysis reported that in January, our personal income increased by 0.3 %, down from an increase of 0.5 % in December. Our income did not increase at all in November, so these figures are encouraging.
The good news:
Manufacturing and other goods-producing industries' payrolls increased $17.9 billion, and services-producing industries' payrolls increased $15.5 billion. These figures suggest a postive trend in the economy because income from employment can stimulate an economy more than income from other sources, such as government transfer payments or interest payments.
The bad news:
Not all the news in yesterday's BEA report was encouraging, however. Real personal disposible income, which is after-tax income adjusted for inflation, actually fell by 0.1%. This means that the purchasing power of our income has decreased since last month.
The latest BEA report is especially important to workers in the Atlanta area, who have seen their incomes fall at a faster rate than elsewhere in the nation.
For more regional economic news, click here.