Keeping you up to date on the latest data releases.
- Personal Income
Nominal personal income rose 0.3 percent (non-annualized) in February, following an upwardly revised 1.2 percent gain in January (largely influenced by changes that boosted disposable personal income). On a year-over-year basis, personal income is up 5.1 percent (its highest growth rate since June 2008). Disposable personal income increased 0.3 percent in February, after a 0.8 percent jump up in January as tax changes reduced employee contributions for government social insurance and the “Making Work Pay” provisions from the 2009 ARRA (American Recovery and Reinvestment Act) ended, a partially offsetting factor. Excluding the effects of the tax changes, the release noted that disposable personal income would have risen 0.2 percent in January and 0.3 percent in February. After adjusting for price changes, “real” disposable personal income slipped down 0.1 percent in February and its 3-month annualized growth rate fell from 3.6 percent in January to 2.4 percent in February, slightly below its 12-month trend of 2.7 percent. Real personal consumption expenditures increased 0.3 percent in February, largely on a 1.4 percent pop-up in durables purchases, and is up 2.5 percent over the past year. The personal savings rate slipped down from 6.1 percent to 5.8 percent during the month, though it has been oscillating around 6.0 percent since mid-2008.