Personal income in the United States rose by $210.1 billion, or 0.8 percent, in April, as reported by the U.S. Bureau of Economic Analysis. Disposable personal income (DPI), which is personal income after taxes, saw an increase of $189.4 billion at the same rate of 0.8 percent. Meanwhile, personal consumption expenditures (PCE) went up by $47.8 billion, marking a 0.2 percent rise.
In April, personal outlays—which include PCE, interest payments, and transfer payments—grew by $48.6 billion. The nation's personal saving stood at $1.12 trillion with a saving rate of 4.9 percent.
The primary contributors to the increase in current-dollar personal income were government social benefits and compensation enhancements.
A closer look at the PCE shows that spending on services increased by $55.8 billion but was partially countered by an $8 billion decrease in goods spending.
For further context:
- Current-dollar personal income grew by 0.8 percent.
- Current-dollar DPI also rose by 0.8 percent.
- Real disposable personal income saw a growth of 0.7 percent.
- Current-dollar PCE increased by 0.2 percent.
- Real PCE went up slightly by 0.1 percent.
- Both the PCE price index and its core measure excluding food and energy experienced a modest rise of 0.1 percent each.
The report highlights that increases in government social benefits were driven mainly by Social Security payments linked to the Social Security Fairness Act.
Private wages and salaries contributed significantly to compensation increases based on data from the Bureau of Labor Statistics' Current Employment Statistics (CES). Wages and salaries within service-producing industries climbed by $53.1 billion while those in goods-producing sectors fell by $3.1 billion.
The next update on Personal Income and Outlays will be released on June 27, 2025.