Personal Income increased 0.5% in March; Spending increased 0.7%
The BEA released the Personal Income and Outlays report for March: Personal income increased $116.8 billion (0.5 percent at a monthly rate) in March, according to estimates released today by the U.S. Bureau of Economic Analysis. Disposable personal income (DPI)—personal income less personal current taxes—increased $102.0 billion (0.5 percent) and personal consumption expenditures (PCE) increased $134.5 billion (0.7 percent). Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—increased $136.6 billion in March. Personal saving was $872.3 billion in March and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.9 percent. From the preceding month, the PCE price index for March decreased less than 0.1 percent. Excluding food and energy, the PCE price index increased less than 0.1 percent. From the same month one year ago, the PCE price index for March increased 2.3 percent. Excluding food and energy, the PCE price index increased 2.6 percent from one year ago. emphasis added The March PCE price index increased 2.3 percent year-over-year (YoY), down from 2.7 percent YoY in February, and down from the recent peak of 7.2 percent in June 2022.The PCE price index, excluding food and energy, increased 2.6 percent YoY, down from 3.0 percent in January, and down from the recent peak of 5.6 percent in February 2022. The following graph shows real Personal Consumption Expenditures (PCE) through March 2025 (2017 dollars). Note that the y-axis doesn't start at zero to better show the change. Click on graph for larger image. The dashed red lines are the quarterly levels for real PCE. Personal income and PCE were above expectations.Inflation was below expectations.
The BEA released the Personal Income and Outlays report for March:
Personal income increased $116.8 billion (0.5 percent at a monthly rate) in March, according to estimates released today by the U.S. Bureau of Economic Analysis. Disposable personal income (DPI)—personal income less personal current taxes—increased $102.0 billion (0.5 percent) and personal consumption expenditures (PCE) increased $134.5 billion (0.7 percent).The March PCE price index increased 2.3 percent year-over-year (YoY), down from 2.7 percent YoY in February, and down from the recent peak of 7.2 percent in June 2022.
Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—increased $136.6 billion in March. Personal saving was $872.3 billion in March and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.9 percent.
From the preceding month, the PCE price index for March decreased less than 0.1 percent. Excluding food and energy, the PCE price index increased less than 0.1 percent.
From the same month one year ago, the PCE price index for March increased 2.3 percent. Excluding food and energy, the PCE price index increased 2.6 percent from one year ago.
emphasis added
The PCE price index, excluding food and energy, increased 2.6 percent YoY, down from 3.0 percent in January, and down from the recent peak of 5.6 percent in February 2022.
The following graph shows real Personal Consumption Expenditures (PCE) through March 2025 (2017 dollars). Note that the y-axis doesn't start at zero to better show the change.
Click on graph for larger image.
The dashed red lines are the quarterly levels for real PCE.
Personal income and PCE were above expectations.
The following graph shows real Personal Consumption Expenditures (PCE) through March 2025 (2017 dollars). Note that the y-axis doesn't start at zero to better show the change.
Click on graph for larger image.The dashed red lines are the quarterly levels for real PCE.
Personal income and PCE were above expectations.
Inflation was below expectations.
