Personal income in March 2025 saw an increase of $116.8 billion, growing at a monthly rate of 0.5 percent, as reported by the U.S. Bureau of Economic Analysis. Disposable personal income, which deducts personal current taxes from personal income, rose by $102.0 billion or 0.5 percent, while personal consumption expenditures climbed by $134.5 billion, an increase of 0.7 percent.
In March, personal outlays — the sum of personal consumption expenditures, personal interest payments, and personal current transfer payments — increased by $136.6 billion. The personal saving amount for the month was $872.3 billion, with a personal saving rate of 3.9 percent.
The rise in current-dollar personal income is primarily attributed to increases in both compensation and proprietors’ income. Specifically, personal consumption expenditures saw an increase of $134.5 billion, marked by a rise of $54.5 billion in goods spending and $79.9 billion in services spending.
Analysis of personal income changes from February to March shows a 0.5 percent increase in current-dollar and real disposable income and a 0.7 percent rise in both current-dollar and real personal consumption expenditures. Notably, the PCE price index, including its core aspect excluding food and energy, remained unchanged.
March's income growth mainly came from a boost in compensation and proprietors' incomes. Data from the Bureau of Labor Statistics' Current Employment Statistics indicates that private wages and salaries led the compensation increase, with a $46.4 billion rise in services-producing industries and an $11.8 billion increase in goods-producing sectors. Moreover, a significant rise in farm proprietors' income resulted from the Emergency Commodity Assistance Program under the American Relief Act.
Additionally, a deferred resignation program for federal government employees had an influence, yet the Bureau of Economic Analysis made no adjustments for the program in their employment data as impacted employees will continue to receive pay until officially leaving their roles.
The Bureau of Economic Analysis plans to release the next update on personal income and outlays for April 2025 on May 30, 2025, at 8:30 a.m. EDT.