Personal income in the United States rose by $92.0 billion, marking a 0.4 percent increase at a monthly rate in December, as reported by the U.S. Bureau of Economic Analysis. Disposable personal income (DPI), which is personal income after current taxes, also saw an increase of $79.7 billion or 0.4 percent. Personal consumption expenditures (PCE) went up by $133.6 billion, equating to a 0.7 percent rise.
In December, personal outlays, which include PCE, personal interest payments, and current transfer payments, increased by $129.5 billion. Personal savings amounted to $843.2 billion with a saving rate of 3.8 percent of disposable personal income.
The growth in current-dollar personal income was mainly due to an increase in compensation levels.
The significant rise in PCE for December included an increase of $78.2 billion in services spending and $55.4 billion on goods.
Month-over-month, the PCE price index for December grew by 0.3 percent while excluding food and energy; it increased by 0.2 percent.
Comparing year-on-year data from December last year, the PCE price index rose by 2.6 percent and excluding food and energy items, it showed a rise of 2.8 percent.
The next release is scheduled for February 28, 2025, at 8:30 a.m., covering Personal Income and Outlays for January 2025.
Changes in personal income during December were largely driven by compensation increases led by private wages and salaries according to data from the Bureau of Labor Statistics’ Current Employment Statistics (CES). Services-producing industries saw an increment of $41.5 billion while goods-producing industries experienced a $2.4 billion rise.