Bureau of Economic Analysis Reports Personal Income Drops 7.1% in February

The Bureau of Economic Analysis (BEA) today, Friday, March 26, 2021, reported that according to their latest estimates personal income decreased $1,516.6 billion or -7.1% in February. Disposable personal income (DPI) decreased $1,532.3 billion or -8.0% and person consumption expenditures (PCE) decreased $149.0 billion or -1.0%. Real DPI decreased -8.2% in February and Real PCS decreased 1.2%; goods decreased -3.3% and service decreased -0.1%. The PCE price index increased 0.2%. Excluding food and energy, the PCE price index increased 0.1%. Personal outlays decreased $141.5 billion in February. Personal saving was $2.41 trillion in February and the personal saving rate — personal saving as a percentage of disposable personal income—was 13.6%. The estimate for February personal income and outlays was impacted by the continued government response to COVID-19. Economic impact payments associated with the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (which was enacted on December 27, 2020) declined sharply in February and unemployment benefits continued but at a lower level. Additionally, restrictions and closures continued in some areas of the United States.