Personal income increased $116.5 billion (0.6 percent) in January according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $101.4 billion (0.6 percent) and personal consumption expenditures (PCE) increased $29.6 billion (0.2 percent).
Real DPI increased 0.5 percent in January and Real PCE increased 0.1 percent. The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.1 percent.
January’s increased income is mainly due to salary increases and annual social security benefit cost-of-living increases. The $12.9 billion increase in real PCE in January reflected increases of $2.2 billion in spending for goods and $10.3 billion in spending for services. Within goods, new motor vehicles were the leading contributor to the increase. Within services, the largest contributor to the increase was spending for food services and accommodations.
Personal outlays increased $27.0 billion in January. Personal saving was $1.33 trillion in January, and the personal saving rate, personal saving as a percentage of disposable personal income, was 7.9 percent
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