WASHINGTON, D.C. — In a welcomed economic development, personal income across the United States surged by $122.0 billion, marking a 0.5 percent increase on a monthly rate for March 2024. This data, released today by the Bureau of Economic Analysis (BEA), highlights a robust period for economic growth as consumers' disposable income and spending power continue to climb.
Here are the the Key Figures from March 2024.
Personal Income: Increased by $122.0 billion (0.5%).
Disposable Personal Income (DPI): Rose by $104.0 billion (0.5%).
Personal Consumption Expenditures (PCE): Jumped by $160.9 billion (0.8%).
The rise in personal income was driven primarily by increased compensation across various sectors. As for disposable personal income, the measure of income left after personal current taxes, it reflected a parallel increase, empowering consumers to spend more.
The PCE price index, a key indicator of inflation, rose by 0.3 percent in March. Excluding the volatile food and energy sectors, the PCE price index also saw a 0.3 percent increase. These figures suggest a steady but controlled inflation rate, maintaining a balance between economic growth and price stability.
Real Disposable Personal Income (DPI): Adjusted for inflation, real DPI increased by 0.2 percent.
Real Personal Consumption Expenditures (PCE): Adjusted for inflation, real PCE increased by 0.5 percent, with goods up by 1.1 percent and services up by 0.2 percent.
Examining the month-by-month performance from November 2023 to March 2024:
Personal Income: Consistent increases with notable growth in January (1.0%) and March (0.5%).
Disposable Personal Income: Mirrored the pattern of personal income with steady growth.
Personal Consumption Expenditures: Exhibited significant jumps in February (0.8%) and March (0.8%).
Comparing March 2024 to the same month a year ago, the PCE price index rose by 2.7 percent, reflecting overall price increases for services (4.0%) and a modest increase for goods (0.1%). Food prices rose by 1.5 percent, and energy prices were up by 2.6 percent. Excluding food and energy, the year-over-year PCE price index increased by 2.8 percent.
The $160.9 billion increase in current-dollar PCE was split almost equally between services ($80.6 billion) and goods ($80.3 billion). In the services sector, health care and housing were the primary contributors to the growth. For goods, significant spending was observed in motor vehicle fuels, recreational items, and food and beverages.
Personal outlays, which include PCE, personal interest payments, and personal current transfer payments, saw a total increase of $172.1 billion. This rise in spending contributed to a personal saving rate of 3.2 percent, with personal savings amounting to $671.0 billion.
Month-over-month, the PCE price index saw a 0.3 percent rise in March. Service prices increased by 0.4 percent, and goods prices edged up by 0.1 percent. Food prices showed a marginal decrease of less than 0.1 percent, while energy prices rose by 1.2 percent.
Year-over-year, the PCE price index's 2.7 percent increase was driven by higher costs in services and slight upticks in goods and energy prices. Excluding food and energy, the index's 2.8 percent rise indicates a steady inflation rate within manageable bounds.
The BEA also revised estimates for January and February, providing a more accurate picture of the economic landscape. For instance, personal income in January was revised upwards to $241.9 billion, while February saw a slight downward adjustment to $65.1 billion.
Looking ahead, the next report on Personal Income and Outlays for April 2024 will be released on May 31, 2024, at 8:30 a.m. EDT. As the economy continues to navigate through fluctuations, these updates will be crucial for policymakers, investors, and consumers alike.
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