Monday, April 29, 2013

Personal Income Rose 0.2% in March

Personal income increased 0.2% in March, matching the 0.2% rise in consumption. Income had been volatile due to distortions stemming from tax increases at the beginning of the year. Personal income improved 2.5% over year ago levels, and consumption grew 3.2% over year ago levels.

There was no one driving force for March’s personal income gains. Wage growth and disposable personal income both grew 0.2% from February. Consumption decreased slightly from 0.7% to 0.2%. The decline was driven by nondurable goods, which dropped 1.1% in March.

Consumer prices, as measured by the PCE deflator, fell -0.1% in March. Prices are 1% above year ago levels. March’s report is the lowest inflation levels since late 2009.

The savings rate remained constant at February’s revised 2.7%.

Read the BEA report.

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