Research >> Economics
Personal Income increased 0.4%, Spending increased 0.4%
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Personal income increased $58.7 billion (0.4 percent) in December according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $48.0 billion (0.3 percent) and personal consumption expenditures (PCE) increased $54.2 billion (0.4 percent).
Real DPI increased 0.2 percent in December and Real PCE increased 0.3 percent. The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent.
The increase in personal income in December primarily reflected increases in wages and salaries and personal interest income.
The $34.4 billion increase in real PCE in December reflected an increase of $11.1 billion in spending for goods and a $23.2 billion increase in spending for services (table 7). Within goods, new motor vehicles was the leading contributor to the increase. Within services, the largest contributor to the increase was spending for electricity and gas. Detailed information on monthly real PCE spending can be found in Table 2.4.6U.
Personal outlays increased $61.5 billion in December (table 3). Personal saving was $351.6 billion in December and the personal saving rate, personal saving as a percentage of disposable personal income, was 2.4 percent.
Personal income (table 6) increased 3.1 percent in 2017 (that is, from the 2016 annual level to the 2017 annual level), compared with an increase of 2.4 percent in 2016. DPI increased 2.9 percent in 2017 compared with an increase of 2.6 percent in 2016. In 2017, PCE increased 4.5 percent, compared with an increase of 4.0 percent in 2016.
Real DPI increased 1.2 percent in 2017, compared with an increase of 1.4 percent in 2016. Real PCE increased 2.7 percent, the same increase as in 2016.
Posted: January 29, 2018 Monday 08:30 AM