Personal income, expenses increase in March

Personal income rose 0.2%, or $40 billion, in March from the previous month, according to the Bureau of Economic Analysis. In the same period, disposable personal income increased 0.2% or $35 billion, and personal consumption expenditures were up less than 0.1% or $5.7 billion.

Real disposal personal income rose 0.5% in March, and real personal consumption expenditures increased 0.3%. The personal consumption expenditures index fell 0.2%. It fell 0.1%, excluding food and energy.

The index rose 1.8% in March, compared to the same month in 2016.

“The increase in personal income in March primarily reflected increases in government social benefits to persons, nonfarm proprietors’ income and compensation of employees,” according to BEA. “The increase in real (personal consumption expenditures) in March was more than accounted for by an increase in spending for services, notably spending for household utilities. This increase was partially offset by a decree in spending for durable goods, which was more than accounted for by a decrease in motor vehicles and parts.”