What is Personal Income?

Personal Income Definition. Personal Income is an economic statistic that measures an individual’s total annual gross earnings from wages, business enterprises and various investments. The United States’ Bureau of Economic Analysis formulates the statistic and defines it more specifically as income received by persons from all sources. It includes income received from participation in production as well as from government and business transfer payments. It is the sum of compensation of employees (received), supplements to wages and salaries, proprietors’ income with inventory valuation adjustment and capital consumption adjustment, rental income of persons with capital consumption adjustment, personal income receipts on assets, and personal current transfer receipts, less contributions for government social insurance. Use of the Personal Income extends to calculating per capita income as well.” Personal income is important in forecasting growth in consumer driven economies. In developed countries of the world, personal income can account for 60-70% of GDP.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.