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Nominal personal income was essentially flat in April, declining less than 0.1 percent on a nonannualized basis. This follows two consecutive months of increases, including a 1.2 percent increase in February and a 0.3 percent increase in March. On a year-over-year basis, nominal personal income has increased 2.8 percent. Disposable personal income, which is nominal personal income less current personal taxes, declined 0.1 percent for the month, showing a slight increase in taxes (0.6 percent). Since last year, disposable personal income has increased 1.7 percent. After controlling for price changes, real disposable personal income increased 0.1 percent, following increases of 0.8 percent and 0.3 percent in February and March, respectively. Since April of 2012, real disposable personal income has increased 1.0 percent, as the year-over-year changes have gradually improved since January.
Real personal consumption expenditures increased a little less than 0.1 percent during April, following increases of 0.4 percent in February and 0.2 percent in March. Changes in consumption have been positive each month since last November, but the slight increase in April is the smallest monthly improvement over that time period. Since last year, consumption has increased 2.1 percent. The increase in consumption during April came entirely from goods consumption, which increased 0.3 percent due to an increase in durable goods consumption of 0.7 percent and an increase in nondurable goods consumption of 0.2 percent. Services consumption was basically flat, declining less than 0.1 percent. On a year-over-year basis, goods consumption is up 3.2 percent, while services consumption has increased 1.5 percent. The modest changes in income and consumption were not enough to impact the personal savings rate, which remained at 2.5 percent.