According to Bureau of Economic Analysis, personal income grew $9.0 billion (less than 0.1 percent) in January 2022. Personal consumption expenditures (PCE) climbed $337.2 billion, while disposable personal income (DPI) increased $19.8 billion (0.1 percent).

In January, the real DPI fell 0.5 percent, while the real PCE rose 1.5 percent, with goods increasing 4.3 percent and services increasing 0.1 percent. The PCE price index grew by 0.6 percent this month. The PCE price index grew 0.5 percent excluding food and energy.

In January, the increase in personal income was mostly due to an increase in compensation, which was somewhat offset by a reduction in government social benefit. Within compensation, the increase represented wage and salary increases in both the private and government sectors. A fall in “other” social benefits (marking the suspension of advance Child Tax Credit payments as approved under the American Rescue Plan) was partially offset by a rise in Social Security benefits within government social benefits (reflecting a 5.9 percent cost-of-living adjustment).

The $337.2 billion increase in current-dollar PCE in January reflected a $285.4 billion increase in goods spending and a $51.8 billion increase in services spending. Increases in goods were widespread, with motor vehicles and components, “other” nondurable goods, and recreational goods and vehicles leading the way. Spending on housing and utilities was the major contributor to the growth in services.

In January, personal spending climbed by $342.2 billion. In January, personal savings were $1.17 trillion, with a 6.4 percent personal saving rate (savings as a percentage of disposable personal income).