Keeping you up to date on the latest data releases.
Nominal personal income was essentially flat in December, increasing less than 0.1 percent. This follows a 0.1 percent decline in October and a 0.2 percent increase in November. Over the past twelve months, nominal personal income has declined 0.8 percent. Disposable personal income (DPI)—personal income less current personal taxes—was also flat in December, declining less than 0.1 percent, and as fallen 1.7 percent on a year-over-year basis. After controlling for price changes, real disposable personal income declined 0.2 percent in December following a similar decline of 0.2 percent in October and a 0.1 percent increase in November. Since December of 2012, real disposable personal income has fallen 2.7 percent.
Real personal consumption expenditures increased 0.2 percent in December, following a strong 0.6 percent increase in November; and over the past twelve months, consumption has increased 2.5 percent. Consumption of durable goods fell 1.4 percent in December, following an increase of 2.1 percent in November, while consumption of nondurable goods increased 1.0 percent for the month. Services consumption increased 0.2 percent in December, and has been positive for each of the last five months. On a year-over-year basis, durable and nondurable goods consumption have increased 4.8 and 3.7 percent, respectively, while services consumption is up 1.7 percent. The larger increase in consumption relative to income resulted in a third consecutive monthly decline in the personal savings rate, from 4.3 to 3.9 percent, its lowest level since January of last year.