Today in the economic news, the Bureau of Economic Analysis reported Personal Income increased $67.3 billion (+0.4%) in February.
Disposable Personal Income increased $53.9 billion (+0.4%) and Personal Consumption Expenditures (PCE) increased $27.7 billion (+0.2%).
Real DPI increased +0.2%. Excluding food and energy, the PC price index increased +0.2%.
The increase in personal income in February primarily reflected increases in wages and salaries and nonfarm proprietors’ income.
The $1.4 billion increase in real PCE in February reflected an increase of $1.0 billion in spending for goods and a $0.5 billion increase in spending or services.
Within goods, recreational goods and vehicles were the leading contributors to the increase.
Within services, financial services and insurance was the leading contributor to the increase.
Personal outlays increased $27.8 billion in February. Personal saving was $497.4 billion in February and the personal saving rate, personal saving as a percentage of disposable income, was 3.4%.
Personal Income increased 3.1% in 2017, compared with an increase of 2.4% in 2016. DPI increased 2.9% in 2017 compared with an increase of 2.6% in 2016.
In 2017, PCE increased 4.5%, compared with an increase of 4.0% in 2016.
Real DPI increased 1.2% in 2017, compared with an increase of 1.4% n 2016. Real PCE increased 2.8%, compared with an increase of 2.7% in 2016.