US Personal Spending, Income Up 0.5% in January


Personal consumption expenditures increased sharply by 0.5 percent from preceding month in January of 2016 following an upwardly revised 0.1 percent growth in December while beating market expectations of 0.3 percent, boosted by higher purchases of durable goods (+1.2 percent) and services (+0.6 percent). Income went up 0.5 percent, compared to 0.3 percent in December and above forecasts, led by an increase of 0.6 percent in wages and salaries.

Personal consumption expenditures (PCE) increased $63.0 billion, or 0.5 percent. Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $67.5 billion in January, compared with an increase of $14.3 billion in December.  PCE increased $63.0 billion, compared with an increase of $11.6 billion. Personal saving was $705.1 billion in January, compared with $709.2 billion in December. The personal saving rate was 5.2 percent, the same rate as in December.  

Personal income increased $79.6 billion, or 0.5 percent, and disposable personal income (DPI) increased $63.5 billion, or 0.5 percent, in January. Real DPI increased 0.4 percent in January, the same increase as in December. Real PCE increased 0.4 percent in January, compared with an increase of 0.2 percent in December.

Wages and salaries increased $48.1 billion in January, compared with an increase of $18.3 billion in December. Supplements to wages and salaries increased $6.5 billion in January, compared with an increase of $5.0 billion in December. Proprietors' income increased $7.7 billion in January, compared with an increase of $11.5 billion in December, and rental income of persons increased $5.0 billion in January, compared with an increase of $3.8 billion in December. Personal income receipts on assets (personal interest income plus personal dividend income) increased $11.6 billion, in contrast to a decrease of $8.5 billion. 

Personal current transfer receipts increased $10.6 billion in January, compared with an increase of $17.5 billion in December. Contributions for government social insurance -- a subtraction in calculating personal income -- increased $10.0 billion in January, compared with an increase of $2.0 billion in December.

The price index for PCE increased 0.1 percent in January, in contrast to a decrease of 0.1 percent in December. The PCE price index, excluding food and energy, increased 0.3 percent, compared with an increase of 0.1 percent. The January PCE price index increased 1.3 percent from January a year ago. The January PCE price index, excluding food and energy, increased 1.7 percent from January a year ago.


US Personal Spending, Income Up 0.5% in January


BEA | Joana Ferreira | joana.ferreira@tradingeconomics.com
2/26/2016 3:57:48 PM