Bureau of Economic Analysis Personal Income and Outlays
The Personal Income and Outlays Report is issued monthly by the Bureau of Economic Analysis. The report provides insight into consumer behavior and total economic consumption – reporting personal incoming and monthly spending. SME reviews the manufacturing wages and salaries.
Manufacturing: Long-term Optimism; Near-term Improvement
August 2, 2016
Manufacturing income grew in 2016’s second quarter, according to the June Personal Income and Outlays report from the Bureau of Economic Analysis, rising $2.2 billion over the first quarter. While manufacturing saw a decrease in personal income in June, longer-term confidence is likely to lead to near-term improvement, given strengthening Markit U.S. Manufacturing PMI July data.
“These reports should be viewed holistically,” Jeff Krause, CEO, SME, said. “Manufacturing is continuing to exhibit long-term optimism, as shown in yesterday’s Markit U.S. Manufacturing PMI increase, and I expect to see July’s personal income follow suit.”
Overall, personal income increased 0.2% in June; personal outlays also increased $58.3 billion.
Manufacturing Income Grows; Indicates Stability
June 29, 2016
The Federal Government’s May 2016 Personal Income and Outlays report showed an overall increase in personal income of $37.1 billion, a 0.2 percent increase over April numbers. Wages and salaries increased at the same 0.2 percent rate, while manufacturing wages grew 0.3 percent.
“Growth in all wages is good for our economy, but manufacturing continues to outperform the economy as a whole. Since February, manufacturing wages and salaries have risen to over $838 billion, or by 1.3 percent,” SME Chief Executive Officer Jeff Krause said. “With four straight months of increases, American manufacturing wages and salaries have grown more than 31 percent faster than overall wages.”
Mixed Reports Ignore Long-term Business Optimism
June 1, 2016
Today’s Markit U.S. Manufacturing Purchasing Managers Index proclaims the weakest manufacturing in over six-and-a-half years, with only a passing mention of manufacturers’ continuing faith in the long-term business outlook despite short-term uncertainty. Momentum, according to the report, declined to 50.7 in May from 50.8 in April. Though, while outputs slowed and new business growth was modest, payroll numbers and the rate of job growth both saw increases – attributed to new products and long-term optimism.
On these topics, SME Chief Executive Officer Jeff Krause explains: “With the impact of the recession still fresh in our minds, it’s easy to view short-term slowdowns as overly bleak. However, with wages and salaries in manufacturing growing nearly three times as much as those in the entire workforce, it’s clear to see that manufacturers continue to see long-term growth and opportunity.”
Additionally, manufacturing wages and salaries, according to the Bureau of Economic Analysis’ Personal Income and Outlays announcement, hit $836 billion in April – growing nearly 1.1 percent month-over-month. Indicative of positive long-term outlooks among employers that is mostly lacking from Markit’s narrative.
Manufacturing Pays $807.9 Billion in March
April 29, 2016
The manufacturing wages report results for March underscore again the importance of manufacturing to the U.S. economy – something that we here at SME feel strongly about.
SME Chief Executive Officer Jeff Krause comments: “Income for manufacturing workers dipped slightly in March – but manufacturers still paid out more than $807.9 billion in wages and salaries to workers during the month. That money goes into local economies across Michigan and the entire nation. Workers make purchases and positively impact other industries – namely service industries. Manufacturing provides good jobs with good wages.”