March 30, 2020
In February, personal income rose by $106.8 billion (0.6%) in the U.S, according to estimates released by the Bureau of Economic Analysis. Disposable personal income (DPI) climbed $88.7 billion (0.5%) and personal consumption expenditures (PCE) grew $27.7 billion (0.2%).
Real DPI rose 0.4% in February and Real PCE climbed 0.1%. The PCE price index rose 0.1%. The PCE price index less food and energy increased 0.2%.
The growth in personal income in February was primarily attributed to increases in compensation of employees and farm proprietors’ income.
In February, the real PCE rose by $13.0 billion revealing a $18.3 billion increase in spending for services which was partly tempered by a $7.7 billion decrease in spending for goods. Within services, spending on electricity and gas was the leading contributor to the increase. Within goods, the largest contributors to the decrease were spending on motor vehicles and parts as well as recreational goods and vehicles.
Personal outlays improved $28.4 billion in February while personal saving was $1.38 trillion and the personal saving rate, personal saving as a percentage of disposable personal income, was 8.2%.
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