US Personal Spending Rises in January

Personal consumption expenditures increased $48.1 billion, or 0.4 percent in the first month of 2014, after advancing by a revised 0.1 percent in December.
U.S. Bureau Economic Analysis | Joana Taborda | joana.taborda@tradingeconomics.com 3/3/2014 1:52:47 PM
Purchases of durable goods decreased 0.2 percent, compared with a decrease of 2.2 percent. Purchases of nondurable goods decreased 0.7 percent, in contrast to an increase of 0.8 percent. Purchases of services increased 0.8 percent, in contrast to a decrease of 0.1 percent. 

Personal income increased $43.9 billion, or 0.3 percent and disposable personal income increased $45.2 billion, or 0.4 percent, in January. In December, personal income decreased $5.5 billion, or less than 0.1 percent and disposable personal income decreased $9.7 billion, or 0.1 percent

The change in the January estimate of personal income was affected by several special factors.  Personal income in January was boosted by several provisions of the Affordable Care Act (ACA), which affected government social benefit payments to persons. In addition, personal income was boosted by cost-of-living adjustments to several federal transfer programs and by pay raises for civilian and military personnel.  In contrast, the change in personal income in January was reduced by the expiration of Emergency Unemployment Compensation programs and by lump-sum social security benefit payments that had boosted December personal income.

US Personal Spending Rises in January