Personal income increased $72.9 billion (0.3%) in February, according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $89.9 billion (0.5%) and personal consumption expenditures (PCE) increased $27.9 billion (0.2%).
The PCE price index increased 0.3%. Excluding food and energy, the PCE price index also increased 0.3%. Real DPI increased 0.2% in February and Real PCE decreased 0.1%; goods and services each decreased 0.1%
The increase in current-dollar personal income in February was led by an increase in compensation, mainly from wages and salaries. Private wages and salaries for services-producing industries and government wages and salaries increased.
The $27.9 billion increase in current-dollar PCE in February reflected an increase of $25.8 billion in spending for services and an increase of $2.0 billion in spending for goods. Within services, increases in housing and health care were partly offset by a decrease in food services and accommodations. Within goods, increases in gasoline and other energy goods, “other” nondurable goods (led by pharmaceuticals), and food and beverages were partly offset by a decrease in motor vehicles and parts (mainly new and used light trucks).
Detailed monthly PCE spending data are presented on Table 2.4.5U.
Personal outlays increased $40.7 billion in February. Personal saving was $915.8 billion in February and the personal saving rate — personal saving as a percentage of disposable personal income — was 4.6%.
From the preceding month, the PCE price index for February increased 0.3%. Prices for goods increased 0.2% and prices for services increased 0.3%. Food prices increased 0.2% and energy prices decreased 0.4%. Excluding food and energy, the PCE price index increased 0.3%.
Detailed monthly PCE price indexes are presented on Table 2.4.4U.
From the same month one year ago, the PCE price index for February increased 5.0%. Prices for goods increased 3.6% and prices for services increased 5.7%. Food prices increased 9.7% and energy prices increased 5.1%. Excluding food and energy, the PCE price index increased 4.6% from one year ago.
The 0.1% decrease in real PCE in February reflected a decrease of 0.1% in spending on goods and a decrease of 0.1% in spending on services. Within goods, a decrease in motor vehicles and parts (specifically new motor vehicles) was partly offset by an increase in gasoline and other energy goods. Within services, the largest contributor to the decrease was food services and accommodations (mainly food services).
Detailed monthly real PCE spending data are presented on Table 2.4.6U.