Personal Income and Consumption Rose Slightly in February

Personal income increased 0.2 percent, $23.7 billion, in February, according to the Bureau of Economic Analysis, down from a 0.5 percent gain in January. Personal consumption expenditures also increased, rising 0.1 percent, or $11.0 billion.

Real disposable income – personal income less personal taxes – increased 0.3 percent in February, the same as the January rate.

The personal savings rate – personal savings as a percentage of personal income – was 5.4 percent, up 10 basis points from January’s rate.

Wages and salaries fell $9.4 billion, compared to a $46.5 billion increase in the previous month. The majority of the decline was due to a $12.9 billion dollar drop in private sector wages. In contrast, government wages increased by $3.5 billion.

The price index for PCE fell 0.1 percent in February, compared to a 0.1 percent January increase. Excluding food and energy, the index increased by 0.1 percent.

Read the BEA release.

About Tim Nicholson

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