Personal Income

Personal  income includes all the following earnings sources 

• wages (58% of the total)
• interest and dividends
• proprietor income
• other miscellaneous labor income

The indicator reports personal income in addition to consumption spending which is meaningful because it represents over 50% of the gross domestic product (GDP).

Also included in the report is data on personal income and savings which provide economists insight into future spending trends. A slide in the savings rate could suggest consumers are financing more purchases.  Usually however, this spending situation is not sustainable and this assumption follows the expectation that spending will decline in future months.

Rapid economic growth can result from strong gains in personal income and consumption spending raising investor concerns that the Fed will increase interest rates. 

Link to Government Data 

Bureau of Labor Statistics