February 28, 2022
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).
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.