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Nominal personal income increased at a nonannualized rate of 0.3 percent in January. This comes after a slight decline (less than 0.1 percent) in December, and over the past twelve months, nominal personal income has increased 4.1 percent. Disposable personal income (DPI)—personal income less current personal taxes— increased 0.4 percent in January and is up 4.0 percent since last year. After controlling for price changes, real disposable personal income increased 0.3 percent, following a 0.1 percent increase in November and a 0.2 percent decline in December. Since January of 2013, real DPI has increased 2.8 percent.
Real personal consumption expenditures increased 0.3 percent in January following a 0.1 percent decline in the prior month. Over the past twelve months, consumption is up 2.2 percent. The increase in January was entirely driven by services consumption, as a 0.8 percent increase in the consumption of services offset a 0.6 percent decline in the consumption of goods. The decrease in goods consumption was the result of a decline in the consumption of both durable and nondurable goods. Durable goods consumption fell 0.2 percent and nondurable goods consumption was down 0.7 percent for the month. On a year-over-year basis, goods consumption is up 2.5 percent, while services consumption is up 2.1 percent. The similar increase in income and consumption in January kept the personal savings rate steady at 4.3 percent.