The most recent data release from the Bureau of Economic Analysis (BEA) showed that personal income growth roared by 21.1% in in March, the biggest monthly gain on record. It stood at a seasonally adjusted annual rate (SAAR) of $24,207.7 billion. The gains in personal income were largely due to the American Rescue Plan Act, which includes $4,044 billion in Economic impact payments. Compensation of employees inched up 1.0% in March, after an increase of 0.1% in February.
Real disposable income (income remaining after adjusting for taxes and inflation) was up 23% after a 8.1% decrease in February, marking the largest monthly on record. Personal consumption expenditures (PCE) rose 4.2% in March after a dip of 1% in February.
In March, the record rise in personal income pushed the personal savings rate to 27.6%, compared to a record high savings rate of 33.7% in April 2020 Personal savings remained elevated at an annual pace of $6.4 billion, the highest level after May 2020.