Personal income in United States continued declining in the first quarter of 2009, falling 0.5 percent, according to estimates released by the U.S. Bureau of Economic Analysis (BEA). In the fourth quarter of 2008, personal income fell 0.4 percent.
This decline was offset by inflation, which fell 0.3 percent in the first quarter 2009 after falling 1.2 percent in the fourth quarter 2008.

According to BEA, job losses, lower interest rates, and smaller corporate dividend payments all helped to push personal income down in the first quarter. Rising unemployment insurance benefits for displaced workers, cost of living adjustments for retirees, moderated the decline in personal income and pay raises for government employees.

Source: BEA