Personal Income Rose, Consumption Fell in December

Personal income increased $42.5 billion, or 0.3 percent in December, according to the Bureau of Economic Analysis, consistent with November’s rise. Personal consumption expenditures fell $0.7 billion, or less than 0.1 percent.

Real disposable personal income – personal income less taxes – increased 0.4 percent, up from a 0.2 percent in November.

The personal savings rate – personal savings as a percentage of personal income – was 5.5 percent, up from 5.3 percent in November.

Wages and salaries increased $13.1 billion in December, after a $37.9 billion increase in November. The majority of the month’s gain was due to private sector wage increases.

The price index for PCE fell 0.1 percent, in contrast to a 0.1 percent increase in November. The index excluding food and energy increased by less than 0.1 percent.

Read the BEA release.


About Author

Tim Nicholson

Tim Nicholson is an economic research associate at ABA.