Personal Income, Disposable Income, and Personal Consumption Expenditures All Increase in January

On Thursday, the US Bureau of Economic Analysis (BEA) released estimates showing personal income (PI) increased $233.7 billion, or 1.0%, month-over-month in January. Disposable personal income (DPI)—personal income less personal current taxes—increased $67.6 billion, or 0.3%. Personal consumption expenditures (PCE) increased $43.9 billion, or 0.2%.

The PCE price index increased 0.3% in January. Excluding food and energy, the PCE price index increased 0.4%. Real DPI decreased less than 0.1%, and real PCE decreased 0.1%; goods declined 1.1% while services increased 0.4%.

Year-over-year, the PCE price index for January increased 2.4%. Prices for services increased 3.9%, while prices for goods decreased 0.5%. Food prices increased 1.4%, and energy prices declined 4.9%. Excluding food and energy, the PCE price index increased 2.8% from one year ago.

Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—increased $54.3 billion in January. Personal saving was $779.3 billion, and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.8% in January.