WASHINGTON -- The U.S. Commerce Department’s Bureau of Economic Analysis today released data on personal income and outlays for January 2011. Personal income increased 1.0 percent in January, exceeding private-sector expectations of a 0.4-percent rise. Wages and salaries, the largest component of income, rose 0.3 percent, perhaps hampered by more severe than usual weather in some parts of the country. Real consumer spending edged down 0.1 percent in January but has already risen 0.8 percent at an annual rate above its fourth-quarter average.

Real gross domestic product (GDP) grew at an annual rate of 2.8 percent in the fourth quarter of 2010, according to today’s preliminary estimate. This follows a growth rate of 2.6 percent in the third quarter.

Gross Domestic Product Fourth Quarter 2010 (second estimate)

WASHINGTON – The U.S. Commerce Department’s Bureau of Economic Analysis today released the second estimate of gross domestic product (GDP) for the fourth quarter of 2010. Real GDP grew 2.8 percent at an annual rate, less than expectations and revised down from the 3.2-percent advance estimate. The downward revision reflects a wider trade deficit, reduced state and local government spending, and lower personal consumption.

Statement from U.S. Commerce Department Chief Economist Mark Doms on the Second Estimate of GDP for the Fourth Quarter of 2010

Personal income in December 2010 rose 0.4 percent.  Nominal personal consumption expenditures (PCE) increased 0.7 percent and real PCE rose 0.4 percent. Nominal disposable income (DPI) increased 0.4 percent and real DPI rose 0.1 percent. The personal savings rate as a percentage of DPI was 5.3 percent.

Statement from U.S. Commerce Department Acting Deputy Secretary Rebecca Blank on Personal Income and Outlays in December 2010

Press Release

Here’s what I take away from today’s GDP release:

1. A bit of good news is that the headlines about GDP appear to be more positive than I thought they would be, as they are emphasizing that the economy gained some steam and that consumer spending picked up.

2. GDP growth in Q4 came in at 3.2 percent, and the market was expecting 3.5 percent. Statistically speaking, there really is no difference between these numbers, so any blather about GDP being weaker than expected is, well, blather.