Wednesday, March 01, 2017

Personal Income increased 0.4% in January, Spending increased 0.2%

by Bill McBride on 3/01/2017 09:02:00 AM

The BEA released the Personal Income and Outlays report for January:

Personal income increased $63.0 billion (0.4 percent) in January according to estimates released today by the Bureau of Economic Analysis ... personal consumption expenditures (PCE) increased $22.2 billion (0.2 percent).
...
Real PCE decreased 0.3 percent. The PCE price index increased 0.4 percent. Excluding food and energy, the PCE price index increased 0.3 percent.
The January PCE price index increased 1.9 percent year-over-year (compared to 1.6 percent YoY in December) and the January PCE price index, excluding food and energy, increased 1.7 percent year-over-year (same as in December).

The following graph shows real Personal Consumption Expenditures (PCE) through January 2017 (2009 dollars). Note that the y-axis doesn't start at zero to better show the change.

Personal Consumption Expenditures Click on graph for larger image.

The dashed red lines are the quarterly levels for real PCE.

The increase in personal income was above consensus, and the increase in PCE was below consensus expectations.