Keeping you up to date on the latest data releases.
- Personal Income
Nominal personal income increased at a nonannualized rate of 1.1 percent in February, which follows a 2.6 percent increase in December and a 3.7 percent decline in January. The large movements over those prior two months were primarily due to anticipation and implementation of tax changes at the beginning of the year. Over the past twelve months, nominal personal income is up 2.7 percent. There was not much influence of changing taxes on income in February as disposable personal income (personal income less current taxes) also increased 1.1 percent. After controlling for price changes, real disposable personal income increased 0.7 percent for the month and has increased 0.9 percent on a year-over-year basis. While there has been more variation in monthly income changes recently due to tax changes and other factors, income has averaged monthly increases of 0.7 percent since the beginning of the fourth quarter of last year, which is in line with longer-term trends. Real personal consumption expenditures increased 0.3 percent in February, following increases of 0.2 percent and 0.3 percent in December and January, respectively, and have increased 2.0 percent since February of 2012. The near-term (three-month) trend in monthly consumption growth is at 0.3 percent, which is similar to the trend in monthly changes over the past year. During February, goods consumption improved 0.3 percent, which was primarily driven by consumption of nondurable goods (up 0.5 percent) and services consumption increased 0.3 percent as well. The personal savings rate ticked up from 2.2 to 2.6 percent.