Personal income rises 0.3%, spending up 0.4%

Personal income rose 0.3%, or by $47.8 billion, in March, from February, according to the Bureau of Economic Analysis. Disposable personal income rose 0.3%, or by $39.8 billion, and personal consumption expenditures rose 0.4%, or by $61.7 billion.

Real disposable personal income increased 0.2% in March, from February, and real personal consumption expenditures increased 0.4%, or by $50 billion. Real values are inflation-adjusted estimates. The price index for personal consumption expenditures rose less than 0.1%. Excluding food and energy, the price index increased 0.2%.

In March, the price index increased 2%, from the same month in 2017. Excluding food and energy, the index rose 1.9%.

The rise in personal income in March was attributed to increases in pay, Social Security benefits and dividend income, according to the BEA.

The rise in real personal consumption expenditures increased as a result of a $24.2 billion rise in spending for goods and a $26.8 billion increase in spending for services. Purchases of recreational goods and vehicles led to the rise in spending for goods. Increased spending for household electricity and gas contributed to the services spending rise.

Personal outlays rose $62.3 billion in March. Personal saving was $460.6 billion, and the personal saving rate, or personal saving as a percentage of disposable personal income, was 3.1%.