Wednesday, March 26, 2014
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Personal Income and Consumption Rose in January
Personal income growth moderated in January, growing by 0.3%, down from the 0.5% growth reported in December. The BEA report released this morning indicated that personal consumption grew by 0.2% in January after failing to grow the previous month.
Personal income growth continued to be led by transfer and rental income. Wage income continues to grow as well, expanding at 0.4% for the second month. Disposable income grew by just 0.1% as tax payments jumped.
Consumption resumed growth in January led by durable goods. Durable goods spending grew by 0.9%, up from 0.5 % the previous month. This contrasts with a commerce department report that indicated durable goods spending shrunk 4% in January. This indicates that although businesses cut spending on capital goods, consumers continued buying durable goods.
Consumption of non-durable goods recovered in January, growing 0.4% after falling 0.8% in December.
The savings rate dropped slightly to 4.6% from 4.7% the previous month. The savings rate for the previous month was revised up substantially due to inclusion of third quarter census data.
Prices increased by 0.2% in January, faster than the 0.1% appreciation in December. Core prices also increased by 0.2%.
Read the report.
Personal Income and Consumption Rose in January
Personal income growth continued to be led by transfer and rental income. Wage income continues to grow as well, expanding at 0.4% for the second month. Disposable income grew by just 0.1% as tax payments jumped.
Consumption resumed growth in January led by durable goods. Durable goods spending grew by 0.9%, up from 0.5 % the previous month. This contrasts with a commerce department report that indicated durable goods spending shrunk 4% in January. This indicates that although businesses cut spending on capital goods, consumers continued buying durable goods.
Consumption of non-durable goods recovered in January, growing 0.4% after falling 0.8% in December.
The savings rate dropped slightly to 4.6% from 4.7% the previous month. The savings rate for the previous month was revised up substantially due to inclusion of third quarter census data.
Prices increased by 0.2% in January, faster than the 0.1% appreciation in December. Core prices also increased by 0.2%.
Read the report.