Keeping you up to date on the latest data releases.
- Personal Income
Nominal personal income increased at a nonannualized rate of 0.2 percent in March, following a 1.1 percent increase in February, and a 3.6 percent decline in January. The large decline in January was primarily due to changes in taxes and pay being pulled forward into the end of 2012. On a year-over-year basis, nominal personal income has increased 2.5 percent. Disposable personal income (nominal personal income less current taxes) increased 0.2 percent in March as well, and has increased 2.1 percent since March of last year. After controlling for price changes, real disposable personal income increased 0.3 percent for the month. This follows changes of −4.1 percent and 0.7 percent in January and February, respectively, and over the past twelve months, real DPI has increased 1.1 percent. Real personal consumption expenditures increased 0.3 percent, following increases of 0.2 and 0.3 percent in the prior two months. Consumption has gained some positive momentum recently, as it has increased each of the last five months. The year-over-year increase of 2.2 percent is the largest 12-month improvement in consumption since October of 2011. The increase in March was driven entirely by services consumption, which increased 0.6 percent. Goods consumption declined 0.3 percent, with durable good goods consumption remaining basically flat and nondurable goods consumption declining 0.4 percent. On a year-over-year basis, goods consumption has increased 2.5 percent and services consumption has increased 2.0 percent. The personal savings rate held steady at 2.7 percent.