If you go to: http://www.tradingeconomics.com/united-states/disposable-personal-income and look at December 2012, there was a huge spike in disposable income. Does anyone know the reason for this?
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A couple of things here. First the way the bars are drawn kind of fool you into believing there is a greater difference in the amounts then there actually is. For example, the month in question, is only 3.1% more then the previous month but the bar is twice as large.
Second, I don't think they clearly explain how or why the determine disposable income. Why would there be a "drastic" drop in January even below the entire year previous? I think it has more to do with spending. That would explain these figures.
Third, along the first point, if you average 1/13 and 12/12 it comes out to only slightly higher then 11/12.
Forth, the trend, but not values, can be explained due to higher income people reaching social security max being reached so less being withheld from one's check. Some will reach the max in November, and more will reach it in December.
Just providing a cursory look at this site, I don't think it is very accurate and I would not use it to make important financial decisions.
Pete B.
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