Personal Income and Consumption Rose in March

Personal income increased 0.4%, $57.4 billion, in March, according to the Bureau of Economic Analysis, up from a 0.1% gain in February. Personal consumption expenditures also increased, rising 0.1% or $12.8 billion.

Real disposable income – personal income less personal taxes – increased 0.3% in March, compared to a 0.2% increase in February.

The personal savings rate – personal savings as a percentage of personal income – was 5.4%, up 30 basis points from the previous month.

Wages and salaries increased $29.2 billion in March, compared to a decrease of $4.6 billion last month. The majority of the increase was due to a $26.3 billion increase in private sector wages and salaries. Government wages and salaries also increased, rising $2.8 billion.

The price index for PCE increased 0.1% in March, compared to a 0.1% decrease in February. Excluding food and energy, the index increased by 0.1%.

Read the BEA release.