Personal income increased $65.3 billion (0.3 percent at a monthly rate) in April, according to estimates released today by the Bureau of Economic Analysis (tables 2 and 3). Disposable personal income (DPI) —personal income less personal current taxes—increased $40.2 billion (0.2 percent) and personal consumption expenditures (PCE) increased $39.1 billion (0.2 percent).

The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.2 percent (table 5). Real DPI decreased 0.1 percent in April and real PCE decreased 0.1 percent; goods decreased 0.4 percent and services increased 0.1 percent (tables 3 and 4).

The increase in current-dollar personal income in April primarily reflected increases in compensation, personal income receipts on assets, and government social benefits to persons (table 2).

The $39.1 billion increase in current-dollar PCE in April reflected an increase of $49.1 billion in spending for services that was partly offset by a $10.0 billion decrease in spending for goods (table 2). Within services, the largest contributors to the increase were housing and utilities (led by housing), health care (both outpatient services and hospitals), and financial services and insurance (led by financial service charges, fees, and commissions). These increases were partly offset by a decrease in transportation services (led by air transportation). Within goods, the largest contributors to the decrease were spending for recreational goods and vehicles (led by information processing equipment) and other nondurable goods (led by recreational items). Detailed information on monthly PCE spending can be found on Table 2.4.5U.

Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—increased $42.8 billion in April (table 2). Personal saving was $744.5 billion in April and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.6 percent (table 1).

Prices

From the preceding month, the PCE price index for April increased 0.3 percent (table 5). Prices for goods increased 0.2 percent, and prices for services increased 0.3 percent. Food prices decreased 0.2 percent and energy prices increased 1.2 percent. Excluding food and energy, the PCE price index increased 0.2 percent. Detailed monthly PCE price indexes can be found on Table 2.4.4U.

From the same month one year ago, the PCE price index for April increased 2.7 percent (table 7). Prices for goods increased 0.1 percent and prices for services increased 3.9 percent. Food prices increased 1.3 percent and energy prices increased 3.0 percent. Excluding food and energy, the PCE price index increased 2.8 percent from one year ago.

Real PCE

The 0.1 percent decrease in real PCE in April reflected a decrease of 0.4 percent in spending on goods and an increase of 0.1 percent in spending on services (table 4). Within goods, the largest contributors to the decrease were gasoline and other energy goods (led by motor vehicle fuels, lubricants, and fluids), recreational goods and vehicles (led by information processing equipment), and other nondurable goods (led by recreational items). Within services, the largest contributor to the increase was health care (led by outpatient services). Detailed information on monthly real PCE spending can be found on Table 2.4.6U.

Updates to Personal Income and Outlays

Estimates have been updated for October through March. For October through December, estimates for compensation, personal taxes, and contributions for government social insurance reflect the incorporation of updated fourth-quarter wage and salary data from the Bureau of Labor Statistics Quarterly Census of Employment and Wages program. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2017) dollar DPI and PCE, are provided below for February and March.

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Next release: June 28, 2024, at 8:30 a.m. EDT
Personal Income and Outlays, May 2024