February 28, 2020
In January, personal income rose by $116.5 billion (0.6%) 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 $101.4 billion (0.6%).
Real DPI rose 0.5% in January and Real PCE climbed 0.1%. The PCE price index rose 0.1%. The PCE price index less food and energy increased 0.1%.
The growth in personal income in January was primarily attributed to increases in compensation of employees and social security benefit payments (related to annual cost of living adjustments), and other government social benefits to persons, which includes the Affordable Care Act refundable tax credit.
In January, the real PCE rose $12.9 billion which revealed a $2.2 billion increase in spending for goods and a $10.3 billion increase in spending for services. Within goods, the largest contributor to the increase was spending on new motor vehicles. Within services, food services and accommodations was the leading contributor to the increase.
Personal outlays improved $27.0 billion in January while personal saving was $1.33 trillion and the personal saving rate, personal saving as a percentage of disposable personal income, was 7.9%.
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