The Bureau of Economic Analysis reports that in March, U.S. personal income rose by $116.8 billion (0.5%), with disposable income up 0.5% and consumer spending increasing $134.5 billion (0.7%), according to the Bureau of Economic Analysis. The rise was driven by higher wages, particularly in service industries, and federal aid boosted farm income. The personal saving rate fell to 3.9%. Inflation, measured by the PCE price index, rose 2.3% year-over-year but remained flat month-to-month. They write:
Personal income increased $116.8 billion (0.5 percent at a monthly rate) in March, according to estimates released today by the U.S. Bureau of Economic Analysis. Disposable personal income (DPI)—personal income less personal current taxes—increased $102.0 billion (0.5 percent) and personal consumption expenditures (PCE) increased $134.5 billion (0.7 percent).
Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—increased $136.6 billion in March. Personal saving was $872.3 billion in March and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.9 percent.
The increase in current-dollar personal income in March primarily reflected increases in compensation and proprietors’ income.
The $134.5 billion increase in current-dollar PCE in March reflected increases of $54.5 billion in spending for goods and $79.9 billion in spending for services.
From the preceding month, the PCE price index for March decreased less than 0.1 percent. Excluding food and energy, the PCE price index increased less than 0.1 percent.
From the same month one year ago, the PCE price index for March increased 2.3 percent. Excluding food and energy, the PCE price index increased 2.6 percent from one year ago.
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