Personal Income and Household Income Drop in the U.S.

It is difficult to get out of this recession hole if consumers have less money to spend. The U.S. Commerce Department Tannounced that take-home pay, adjusted for prices, fell 0.3 percent in August, the third decrease in five months, and personal income dropped for the first time in two years.

The Census Bureau said that median household income in 2010 fell to $49,445, the lowest in more than a decade.

The poverty rate rose to 15.1 percent, a 17-year high.

Report:

"Private wage and salary disbursements decreased $12.2 billion in August, in contrast to an increase of $23.8 billion in July. Goods-producing industries' payrolls decreased $1.3 billion, in contrast to an increase of $6.3 billion; manufacturing payrolls decreased $2.9 billion, in contrast to an increase of $5.8 billion. Services-producing industries' payrolls decreased $10.9 billion, in contrast to an increase of $17.5 billion. Government wage and salary disbursements increased $0.4 billion, in contrast to a decrease of $1.8 billion."

Less taxes:

"Personal current taxes decreased $2.3 billion in August, in contrast to an increase of $2.7 billion in July. Disposable personal income (DPI) -- personal income less personal current taxes -- decreased $5.0 billion, or less than 0.1 percent, in August, in contrast to an increase of $14.4 billion, or 0.1 percent in July."