March US Personal Income Rose, while Personal Spending Modestly Increased and PCE Price Index Grew Slightly
- Personal income up 0.3% or $67.9 billion in March
- Real PCE decreased by less than 0.1%
- Personal saving rate was 5.1%
US Personal Income Rises in March
According to estimates released by the Bureau of Economic Analysis, personal income increased by 0.3% or $67.9 billion in March. Disposable personal income (DPI) also increased by 0.4% or $71.7 billion, while personal consumption expenditures (PCE) increased by less than 0.1% or $8.2 billion. The PCE price index increased by 0.1%, and excluding food and energy, it increased by 0.3%.
US Real DPI Up, PCE Down
Real DPI increased by 0.3% in March, and real PCE decreased by less than 0.1%. This was due to a decrease of 0.4% in goods and an increase of 0.1% in services. Compensation, personal income receipts on assets, and rental income of persons saw an increase in March, but proprietors’ income and personal current transfer receipts decreased. Private wages and salaries led the increase in compensation, and the increase in personal income receipts on assets was due to an increase in personal dividend income.
US Spending Shifts to Services
The $8.2 billion increase in current-dollar PCE in March was primarily due to an increase in spending on services, partly offset by a decrease in spending on goods. Motor vehicles and parts and gasoline and other energy goods saw the largest decrease in spending, while spending on housing and utilities and health care services saw the largest increase.
US Personal Outlays Increase in March
Personal outlays increased by $21.5 billion in March, and personal saving was $1.00 trillion. The personal saving rate was 5.1%. From the preceding month, the PCE price index for March increased by 0.1%, and excluding food and energy, it increased by 0.3%. From the same month one year ago, the PCE price index for March increased by 4.2%, while prices for goods increased by 1.6% and prices for services increased by 5.5%. Food prices increased by 8.0%, and energy prices decreased by 9.8%.
US Real PCE Down Slightly
The decrease of less than 0.1% in real PCE in March was due to a decrease in spending on goods, partly offset by an increase in spending on services. A decrease in motor vehicles and parts was offset by an increase in gasoline and other energy goods within goods, while housing and utilities led the increase within services.
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