US: Personal Income Rises 0.4% in March; PCE in Line with Expectations
The Bureau of Economic Analysis informed that during March personal income increased 0.4%, above the 0.3% gain expected by market consensus; personal spending rose 0.1%, below expectations of a 0.2% increase.
The
Personal Consumption Expenditure price index rose 0.8% year-over-year
affected by the decline in crude oil prices while the core index
increased 1.6%, both numbers were in line with expectations. The PCE
price index is used by the Federal Reserve to measure inflation.
Key numbers:
“Personal income increased $57.4 billion, or 0.4 percent,
and disposable personal income (DPI) increased $50.4 billion, or 0.4
percent, in March, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $12.8 billion, or 0.1
percent. In February, personal income increased $12.0 billion, or 0.1 percent, DPI increased $11.4 billion, or 0.1 percent, and PCE increased $21.4 billion, or 0.2 percent, based on revised estimates.
“Real
DPI increased 0.3 percent in March, compared with an increase of 0.2
percent in February. Real PCE increased less than 0.1 percent, compared
with an increase of 0.3 percent.”
“Wages and salaries increased $29.2 billion in March, in contrast to a decrease of $4.6 billion in February. Private
wages and salaries increased $26.3 billion, in contrast to a decrease
of $8.0 billion. Government wages and salaries increased $2.8 billion,
compared with an increase of $3.4 billion.”
“Real DPI -- DPI
adjusted to remove price changes -- increased 0.3 percent in March,
compared with an increase of 0.2 percent in February.”
“Real PCE
-- PCE adjusted to remove price changes -- increased less than 0.1
percent in March, compared with an increase of 0.3 percent in February.
Purchases of durable goods decreased 0.3 percent, in contrast to an
increase of 0.4 percent. Purchases of motor vehicles and parts more
than accounted for the decrease in March. Purchases of nondurable goods
increased 0.7 percent in March, in contrast to a decrease of 0.3 percent
in February. Purchases of services decreased 0.1 percent, in contrast
to an increase of 0.4 percent.
“The price index for PCE
increased 0.1 percent in March, in contrast to a decrease of 0.1 percent
in February. The PCE price index, excluding food and energy, increased
0.1 percent, compared with an increase of 0.2 percent.”
“The March PCE price index increased 0.8 percent from March a year ago. The March PCE price index, excluding food and energy, increased 1.6 percent from March a year ago.”