February 03, 2020
In December, personal income rose $40.7 billion (0.2%) in the U.S, according to estimates released by the Bureau of Economic Analysis. Disposable personal income (DPI) climbed $30.6 billion (0.2%) and personal consumption expenditures (PCE) grew $46.6 billion (0.3%).
Real DPI rose 0.1% in December and Real PCE climbed 0.1%. The PCE price index rose 0.3%. The PCE price index less food and energy increased 0.2%.
The growth in personal income in December was primarily attributed to increases in compensation of employees and personal interest income that were partially offset by a decrease in farm proprietors’ income.
In December, the real PCE rose $6.8 billion which revealed a $2.5 billion increase in spending for goods and a $4.4 billion increase in spending for services. Within goods, the largest contributor to the increase was spending on prescription drugs. Within services, spending for health care was the leading contributor to the increase.
Personal outlays improved $51.5 billion in December while personal saving was $1.28 trillion and the personal saving rate, personal saving as a percentage of disposable personal income, was 7.6%.
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
