Personal Income Increases, Expenditures Fall Flat

Personal income increased $59.4 billion, or 0.4 percent, in April according to the Bureau of Economic Analysis, compared to the less than 0.1 percent increase the previous month. Personal consumption expenditures decreased $2.6 billion, or less than 0.1 percent in April, following an increase of 0.5 percent in March.

Disposable personal income—personal income less personal current taxes—increased $48.8 billion, or 0.4 percent in April, after being flat in March. Real disposable income increased 0.3 percent, compared to a 0.2 percent decrease the previous month.

The personal savings rate was 5.6 percent, up 4 basis points from March.

Private wages and salaries increased $15.7 billion, compared with an increase of $8.4 billion in March. Goods-producing industries’ payrolls increased $1.5 billion, manufacturing payrolls increased $0.4 billion, services-producing industries increased $14.2 billion and government wages and salaries increased $2.0 billion.

Supplements to wages and salaries increased $4.3 billion in April, compared with an increase of $3.8 billion in March. Proprietors’ income increased $2.5 billion in April, in contrast to a decrease of $0.5 billion the previous month.

The price index for PCE increased less than 0.1 percent in April, compared with an increase of 0.2 percent in March. The PCE price index, excluding food and energy, increased 0.1 percent in April, consistent with March.