Personal income and outlays track personal income and monthly
spending of individuals in the U.S. These two data points are
produced monthly by the Bureau of Economic Analysis. It is an
important economic indicator to help gauge the strength of the
consumer sector in the U.S. Personal income encompasses all
sources of income, such as 1. wages and salaries 2. fringe
benefits like employer contributions of private pension plans 3.
rental income 4. dividends and interest and transfer payments
such as Social Security and unemployment compensation. As U.S.
consumers spend approximately 95 cents of each dollar received,
income becomes a major determinant of spending. As a result,
change in income level becomes an important indicator of the
health of the economy. On the other hand, outlays consist mostly
of personal consumption expenditures like purchase of durable
goods, nondurable goods and services. Personal interest payments
and transfer payments are also included in this category.
Besides reporting the level of