U.S. Personal Income rose $40.7 billion in December

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%.

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