Investopedia

Continue to Site »

Personal Income And Outlays

Filed Under » , ,
Dictionary Says

Definition of 'Personal Income And Outlays '

A set of two data points produced by the Bureau of Economic Analysis that track personal income and monthly spending. Personal income is the dollar value of income from all sources by individuals in the U.S.; personal outlays is the dollar value of purchases of durable and non-durable goods and services by consumers in the U.S.

Investopedia Says

Investopedia explains 'Personal Income And Outlays '

This economic indicator helps gauge the strength of the consumer sector in the United States. Because consumer spending equates to such a large portion of the country's GDP, being able to gauge trends in income and spending is very important to investors, as it indicates the overall strength of the economy. Also, if investors can track whether consumer monies are being spent on durables, non-durables or services, they can better plan in which companies to invest.

As income and spending increase, it is thought that the equity markets should react positively. This is because of an assumed resulting increase in corporate profits. This could lead to wage and product inflation, though, which would have a negative effect on the bond markets.

Articles Of Interest

  1.

    Why The Consumer Price Index Is Controversial

    Find out why economists are torn about how to calculate inflation.

  2. Economic Indicators For The Do-It-Yourself Investor

    These tools put the market in your hands.

  3. Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.

  4. Understanding The Consumer Confidence Index

    We look at this closely watched economic indicator to see what it means and how it's calculated.

  5. Introduction To Stationary And Non-Stationary Processes

    What to know about stationary and non-stationary processes before you try to model or forecast.

  6. What is GDP and why is it so important?

    The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a ...

  7. Economic Indicators To Know

    The economy has a large impact on the market. Learn how to interpret the most important reports.

  8. Predict Inflation With The Producer Price Index

    Find out how the PPI can be used to gauge the overall health of the economy.

  9. Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.

  10. Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center