WASHINGTON — Personal income rose 0.3% in March, while nominal PCE was up 0.4% and the core PCE price index rose 0.2% in the month and 1.9% year/year, about as expected, data released by the Bureau of Economic Analysis Monday morning showed.
The core price index's 1.9% year/year rise in March was up sharply from 1.6% in February and the strongest pace since February. Much of the acceleration was due to a monthly decline in March 2017 rolling out of the equation, so the year/year rate has returned to its level prior to that decline.
Personal income growth was supported by a gain in wages and salaries, as well as gains in the other income categories.
The saving rate slipped to 3.1% in March from 3.3% in February, keeping the rate well below its 3.9% year-ago level. Some analysts have suggested that the relatively low level of savings has helped consumption, though much of the consumption gains seen over the last year seem to be financed rather than supported by cash.
Personal taxes rose by 0.4% in the month after a 0.7% rebound in February. Disposable personal income rose by 0.3%, same as pre-tax income, while real disposable income was up 0.2%.
The 0.4% rise in current dollar PCE followed a flat reading in February. Spending on durable goods rose 0.8% in the month, but nondurable goods spending fell 0.2% on a 2.8% drop in energy prices. Services spending was up 0.6%.
Real PCE was up 0.4% in March, as the overall PCE price index was flat due to the drop in energy prices. The overall price index was up 2.0% year/year, the highest since February 2017 prior to the March 2017 dip.
After inflation adjustment, durable goods PCE was up 1.1%, compared with the 0.8% nominal gain. Real nondurable goods PCE was up 0.3% compared with the 0.2% nominal decline. Real services PCE was up only 0.3% compared with the 0.6% nominal gain.WASHINGTON — Personal income rose 0.3% in March, while nominal PCE was up 0.4% and the core PCE price index rose 0.2% in the month and 1.9% year/year, about as expected, data released by the Bureau of Economic Analysis Monday morning showed.
The core price index's 1.9% year/year rise in March was up sharply from 1.6% in February and the strongest pace since February. Much of the acceleration was due to a monthly decline in March 2017 rolling out of the equation, so the year/year rate has returned to its level prior to that decline.
Personal income growth was supported by a gain in wages and salaries, as well as gains in the other income categories.
The saving rate slipped to 3.1% in March from 3.3% in February, keeping the rate well below its 3.9% year-ago level. Some analysts have suggested that the relatively low level of savings has helped consumption, though much of the consumption gains seen over the last year seem to be financed rather than supported by cash.
Personal taxes rose by 0.4% in the month after a 0.7% rebound in February. Disposable personal income rose by 0.3%, same as pre-tax income, while real disposable income was up 0.2%.
The 0.4% rise in current dollar PCE followed a flat reading in February. Spending on durable goods rose 0.8% in the month, but nondurable goods spending fell 0.2% on a 2.8% drop in energy prices. Services spending was up 0.6%.
Real PCE was up 0.4% in March, as the overall PCE price index was flat due to the drop in energy prices. The overall price index was up 2.0% year/year, the highest since February 2017 prior to the March 2017 dip.
After inflation adjustment, durable goods PCE was up 1.1%, compared with the 0.8% nominal gain. Real nondurable goods PCE was up 0.3% compared with the 0.2% nominal decline. Real services PCE was up only 0.3% compared with the 0.6% nominal gain.
