WASHINGTON — Personal income fell $505.5 billion or 3.6% in January following an unrevised 2.6% increase in December, the Commerce Department reported Friday.
The personal income decline was the largest drop since January 1993, when a 3.7% dive occurred.
Personal spending climbed $18.2 billion or 0.2%, after rising a revised 0.1% the previous month. December's spending figure was originally reported as a 0.2% increase.
Economists polled by Thomson Reuters had estimated that personal income would fall 2.1% in January, and correctly foresaw a 0.2% spending increase.
Disposable personal income dropped $491.4 billion, or 4% in January, following a gain of 2.7% in December. Real disposable income, which is adjusted to remove price changes, also fell 4% after climbing 2.7% the previous month.
The core PCE, which excludes food and energy, rose 0.1% after staying flat the previous month.
