personal income - Investment & Finance Definition
A monthly economic statistic report produced by the U.S. government’s Bureau of Economic Analysis. It is released about three or four weeks after the end of the month that it refers to. The impact of the personal income data on the financial markets is limited because it is released after other important indicators that indirectly give clues about personal income, such as retail sales and employment data. Personal income measures income from employment, self-employment, investment income, dividends, and transfer payments (such as Social Security). Income from wages is the largest component. The data’s value comes from showing trends in personal income growth that can indicate future consumer spending patterns. Because consumer spending contributes about two-thirds to gross domestic product (GDP), any downward changes in consumer spending have a significant impact on consumer activity. The release also is the only source for data on consumption of services.