WASHINGTON — Personal consumption expenditures increased 0.6% in March as incomes gained 0.5%, the Commerce Department reported Friday.
February’s PCE figure was revised higher to a 0.9% jump from the 0.7% rise reported last month.
The new number marks the largest increase in consumption since August 2009. February incomes increased by an upwardly revised 0.4%.
Spending for energy goods and services jumped 3.7% in March and increased 15.3% from a year ago.
Economists expected consumption would increase 0.5% and incomes would rise 0.4% in the month, according to the median estimate from Thomson Reuters.
Core personal consumption expenditures increased 0.9% from a year ago, matching a 0.9% rise in February. Core PCE was up 0.1% month-over-month.
Personal income jumped in January following the extension of the Bush-era tax cuts, gaining 1.1%, the largest increase in 20 months.
March disposable personal income increased 0.6% and the personal savings rate — disposable personal income minus consumption — was at $651.2 billion, up from $647.5 billion in February.