US Personal Income Rises in $197.7 Billion in February
Disposable personal income continues to beat inflation despite rise in personal consumption expenditures
U.S. personal income growth has stayed ahead of inflation in February, generating higher personal outlays and disposable personal income. A Bureau of Economic Analysis report publised while consumers fear price increases from proposed reciprocal tariffs from April 2 said personal income increased $194.7 billion, or 0.8%, at a monthly rate in February. Disposable personal income (DPI), which is personal income less personal current taxes, increased $191.6 billion or 0.9%. Personal consumption expenditure (PCE) increased $87.8 billion or 0.4%.
Related News: December wholesale prices up a hot 0.4% as fight against inflation appears to have stalled
Personal outlays – the sum of PCE, personal interest payments, and personal current transfer payments – increased $118.4 billion in February. Personal saving was $1.02 trillion in February and the personal saving rate – personal saving as a percentage of disposable personal income – was 4.6.
Personal consumption expenditure increases
The increase in current-dollar personal income in February mainly reflected increases in personal current transfer receipts and compensation.
The $87.8 billion increase in current-dollar PCE in February reflected increases of $56.3 billion in spending for goods and $31.5 billion in spending for services.
From the preceding month, the PCE price index for February increased 0.3%. Excluding food and energy, the PCE price index increased 0.4%.
From the same month one year ago, the PCE price index for February increased 2.5%. Excluding food and energy, the PCE price index increased 2.8% from one year ago.
Read More:
