WASHINGTON — Personal income was flat in December, personal consumption expenditures rose 0.4%, and core PCE prices grew 0.1% for a 1.2% gain over the year.
December real PCE seesawed to a 0.2% rise from a 0.6% jump in November and a 0.1% climb in October, showing unsteadiness. Real disposable personal income fell 0.2% as taxes increased $6 billion.
Private wages were up just $700 million as services dropped. Proprietors' income plunged $8.3 billion because farm income dropped (Congress failed to renew subsidies). This marked the second month of farm income decline at a $14.3 billion rate.
Rents, receipts on assets, and government transfers rose.
Savings decreased to $495.2 billion, and the savings rate of 3.9% was the lowest since January 2013.
Even accounting for the farm income problem, the PI data are just a modest seesaw result that sets January up for economic slowing unless there is a sudden surge in wages. October income and spending were revised lower, though November changes were modest.
For the full year 2013, personal income was up 2.8% after a 4.2% increase in 2012. PCE was up 3.1% after a 4.1% rise in 2012.
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