The most recent data release from the Bureau of Economic Analysis (BEA) showed that personal income increased 0.3% in March. The pace of personal income growth slowed after reaching a 0.8% monthly gain in October. Gains in personal income are largely driven by increases in compensation, personal income receipts on assets, and rental income.
Real disposable income, income remaining after adjusted for taxes and inflation, inched up 0.3% in March. On a year-over-year basis, real (inflation adjusted) disposable income rose 4%, after experiencing negative year-over-year growth from March 2021.
Personal consumption expenditures (PCE) stayed flat in March after a 0.1% increase in February. Real spending, adjusted to remove inflation, decreased less than 0.1% in March, mainly driven by decreasing in spending on goods.
While remaining low historically, the December personal savings rate inched up to 5.1% the highest level since January 2022. As Inflation has almost wiped-out compensation gains, people are dipping into savings to support spending.
6 Responses
Interesting to see personal income up by 0.3% in March, with real disposable income also rising 0.3% year-over-year. However, flat personal consumption expenditures and a slight dip in real spending suggest consumers are still cautious. It will be important to monitor how these trends evolve in the coming months.
Income’s up a bit, that’s good! But sounds like folks are still watching their wallets with inflation and all. Hope things keep trending in the right direction!
It’s interesting to see the slight slowdown in personal income growth compared to last year. The small uptick in real disposable income is definitely a positive sign, especially considering the inflation we’ve been experiencing. Makes you wonder how people are really adjusting their spending habits.
Okay, so income’s up a little! That’s a win. But sounds like people are still feeling the pinch with spending. Hopefully, this trend keeps going upwards! Fingers crossed!
While a slight 0.3% increase in personal income may seem positive, the reality is that things are still more expensive than before.
Interesting breakdown of the recent BEA data! It’s helpful to see the different factors influencing personal income growth, especially the slowing pace since October. Compensation increases seem crucial, but the asset and rental income contributions are noteworthy too. I wonder if shifts in investment strategies, maybe people chasing more stable options during uncertain times, could play a role. It makes me think about diversifying my own income streams, perhaps even considering some side hustles! Maybe delivering groceries with my Eggy Car could be an option.