The most recent data release from the Bureau of Economic Analysis (BEA) showed that personal income decreased in November to a seasonally adjusted annual rate (SAAR) of $19,493 billion. It declined 1.1% in November, primarily as a result of the tapering of government economic recovery payments. However personal income from wages and salaries inched up 0.4%, as the economy continued to reopen.
Real disposable income (income remaining after adjusting for taxes and inflation) was down 1.3% in November after a dip of 0.8% in September. Despite the drop in November, real disposable income was 2.7% higher than it was in February, the month before to the onset of the pandemic. Personal consumption expenditures (PCE) slid 0.4% in November, and was still 1.3% lower than a year ago.
In November, the personal savings rate went down to 12.9%, compared to a record high savings rate of 33.7% in April. Personal savings stood at $2.2 billion (SAAR) in November, still around 60% above the level before the pandemic hit the economy.