Last week, on the day before Thanksgiving, the U.S. Department of Commerce’s Bureau of Economic Analysis released their monthly personal income data for October 2010. Come on guys, did you really mean to release this the day before a major holiday–it was just plain wrong. Well, at any rate, I’m finally able to analyze this new data after digesting my Thanksgiving dinner . . .
The chart below shows the private sector share of personal income from January 1959 to October 2010. The private sector grew again by another 0.1 percentage points and, for the first time since December 2009, is back up over the 70 percent mark (70.05 percent). Interestingly, while the public sector grew in October, the private sector grew even faster allowing the private sector to gain share.
Is this two-month uptick in the private sector an inflection point or a mirage? Time will tell . . . but I’m still expecting the private sector share to go lower which gives me an idea for another blog post, stay tuned.
Note: “Supplements to Wages and Salaries” (benefits) in the BEA data are not broken down into “private” sector” versus “government” components. I used the ratio of private wages and salaries to total wages and salaries in order to disaggregate supplements.