Personal income increased $122.0 billion (0.5 percent at a monthly rate) in March, according to estimates released today by the Bureau of Economic Analysis (tables 2 and 3). Disposable personal income (DPI), personal income less personal current taxes, increased $104.0 billion (0.5 percent) and personal consumption expenditures (PCE) increased $160.9 billion (0.8 percent).

The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.3 percent (table 5). Real DPI increased 0.2 percent in March and real PCE increased 0.5 percent; goods increased 1.1 percent and services increased 0.2 percent (tables 3 and 4).

The increase in current-dollar personal income in March primarily reflected an increase in compensation (table 2).

The $160.9 billion increase in current-dollar PCE in March reflected an increase of $80.6 billion in spending for services and a $80.3 billion increase in spending for goods (table 2). Within services, the largest contributors to the increase were health care (both outpatient and hospital services) and housing and utilities (led by housing). Within goods, the largest contributors to the increase were gasoline and other energy goods (led by motor vehicle fuels, lubricants, and fluids), other nondurable goods (led by recreational items), and food and beverages. Detailed information on monthly PCE spending can be found on Table 2.4.5U.

Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—increased $172.1 billion in March (table 2). Personal saving was $671.0 billion in March and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.2 percent (table 1).

Prices

From the preceding month, the PCE price index for March increased 0.3 percent (table 5). Prices for services increased 0.4 percent and prices for goods increased 0.1 percent. Food prices decreased less than 0.1 percent and energy prices increased 1.2 percent. Excluding food and energy, the PCE price index increased 0.3 percent. Detailed monthly PCE price indexes can be found on Table 2.4.4U.

From the same month one year ago, the PCE price index for March increased 2.7 percent (table 7). Prices for services increased 4.0 percent and prices for goods increased 0.1 percent. Food prices increased 1.5 percent and energy prices increased 2.6 percent. Excluding food and energy, the PCE price index increased 2.8 percent from one year ago.

Real PCE

The 0.5 percent increase in real PCE in March reflected an increase of 1.1 percent in spending on goods and an increase of 0.2 percent in spending on services (table 4). Within goods, the largest contributors to the increase were gasoline and other energy goods (led by motor vehicle fuels, lubricants, and fluids), other nondurable goods (led by recreational items), and food and beverages. Within services, the largest contributor to the increase was health care (both outpatient and hospital services). Detailed information on monthly real PCE spending can be found on Table 2.4.6U.

Updates to Personal Income and Outlays

Estimates have been updated for January and February. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2017) dollar DPI and PCE, are provided below for January and February.

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Next release: May 31, 2024, at 8:30 a.m. EDT
Personal Income and Outlays, April 2024