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.

About Tim Nicholson

Tim Nicholson
Tim Nicholson is an economic research associate at ABA.
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