Personal income rose 0.1% in January, while personal consumption increased 0.5% as disposable personal income fell for the first time since July, the Commerce Department reported yesterday.
Core PCE, which excludes food and energy costs, was flat for the month and increased 1.4% from a year ago following a 1.5% year-over-year increase in December.
Disposable personal income fell 0.4% in January, reflecting an increase in nonwithheld federal income taxes.
Economists expected consumption and income to each increase 0.4%, according to the median estimate from Thomson Reuters. Economists estimated the PCE deflator would be flat for the month.
Personal consumption increased 0.3% in December, revised higher from a 0.2% gain originally reported. Income was revised lower to a 0.3% rise from the 0.4% jump reported last month.
Personal consumption dropped 0.4% in 2009, the largest decline since 1938.