Personal Income and Consumption Rose in January

Personal income increased $79.6 billion, or 0.5 percent in January, according to the Bureau of Economic Analysis, up from a 0.3 percent gain in December. Personal consumption expenditures also increased by 0.5 percent, or $63.5 billion.

Real disposable income – personal income less personal taxes – increased 0.4 percent in January, the same as the December rate.

The personal savings rate – personal savings as a percentage of personal income – was 5.2 percent, also the same as the December rate.

Wages and salaries grew $48.1 billion, compared to an $18.3 billion increase in December. The majority of the month’s gain was due to increase in private sector wages.

The price index for PCE increased 0.1 percent in January, compared to a 0.1 percent decrease in December. Excluding food and energy, the index increased 0.3 percent.

Read the BEA release.