Personal income increased by $57.4 billion in March, growing at a seasonally adjusted annual rate of 0.4%, according to the most recent data release from the Bureau of Economic Analysis. Personal income growth was mostly driven by the rise in compensation of employees ($34.6 billion) and assets revenue ($12.6 billion).

Disposable personal income – income remaining after deducting personal income taxes – continued its steady growth, and so did personal consumption expenditures. In March, disposable personal income grew at a rate of 4.0% and personal consumption expenditures grew by 3.5%.

In March, 5.4% of disposable income went to personal savings, an uptick from a revised savings rate of 5.1% in January. The savings rate rose with the onset of the Great Recession as households repaired their balance sheets. However, this process of deleveraging held back GDP growth due to reduced consumption.

Tags: economics, personal income