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.