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DEPARTMENT OF COMMERCE
Office of Business Economics
For Immediate Use, Thursday, December 11, 19^7•

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OPE--or

Total personal income In October fell back from.the September level,
mainly 'as á'rasuTt of a decline in terminal leave bond cashings, the Oft ice of
Business Economics, Department of Commerce-, announced today.
• Total' personal income in October vas at an annual rate of $20U.5 billion,
compared with $210.9 billion in September. The average level,of personal income
during the first ten months of 19^ 7 vas at an annual rate- of $ 195-6 billion, 12
percent above the first 10 months of 19 ^6 .
When payments on terminal leave account are excluded from the monthly
comparison, the other components of personal income show a rise to an annual rate
of $202.6 billion in October, compared vith $199..?* in September. This is the
more significant comparison betveen the two months because of the great fluctua­
tion in terminal leave cahsings, and their independence of general business
activity.
Increases in personal income in October were centered in proprietors' in­
come, factory and trade pay rolls, and dividend disbursements.
Farm income in general accounted for about half of the gain in the com­
ponents of personal income other than from terminal leave payments. The increase
in farm income resulted from larger farm marketings, particularly of cotton.
Nonagricultural proprietors' income also rose, reflecting increased trade volume
and manufacturers' shipments.
The increase in .factory pay rolls was due to higher employment and a
slightly longer work week in durable goods manufacturing industries. The morethan-seasonal employment increase was the main factor in expanded trade pay roll 1
Dividend disbursements during October vere at an annual rate of $6.9
billion, a fifth ábcve the comparable period of last year.
Personal income includes wage and salary receipts, the net income of
proprietors and partnerships (farm and non-farm), dividends and interest, net
rents received by landlords, and other types of individual income. The annual
rate.data represent the seasonally adjusted dollar totals for each month multi­
plica by 12 to facilitate comparison with previous annual totals.
Details of personal income for September and October 191*?, October l-?!*6 ,
and the first ten months of I9U0 , 1 9 ^6 , and 19^7 are shown in the following ta;u.

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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102