May 29, 2020
In April, personal income rose $1.97 trillion (10.5%) in the U.S, according to estimates released by the Bureau of Economic Analysis. Disposable personal income (DPI) climbed $2.13 trillion (12.9%) and personal consumption expenditures (PCE) fell $1.89 trillion (13.6%).
Real DPI rose 13.4% in April and Real PCE declined 13.2%. The PCE price index fell 0.5%. The PCE price index less food and energy decreased 0.4%.
The growth in personal income in April was primarily attributed to “increases in government social benefits to persons as payments were made to individuals from federal economic recovery programs in response to the COVID-19 pandemic,” according to BEA.
In April, the real PCE fell by $1,662.1 billion revealing a $758.3 billion decline in spending for goods and a $943.3 billion decline in spending for services. Within goods, decreases in all subcomponents were led by a decrease in food and beverages. Within services, the leading contributors to the decrease were spending for health care and food services and accommodations.
Personal outlays fell $1.91 billion in April while personal saving was $6.15 trillion and the personal saving rate, personal saving as a percentage of disposable personal income, stood at 33.0%.
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