Personal income increased $60.0 billion (0.3 percent at a monthly rate) in December, 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 $51.8 billion (0.3 percent) and personal consumption expenditures (PCE) increased $133.9 billion (0.7 percent).

The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.2 percent (table 5). Real DPI increased 0.1 percent in December and real PCE increased 0.5 percent; goods increased 1.1 percent and services increased 0.3 percent (tables 3 and 4).

The increase in current-dollar personal income in December primarily reflected increases in compensation and personal interest income (table 2).

The $133.9 billion increase in current-dollar PCE in December reflected an increase of $75.6 billion in spending for services and a $58.4 billion increase in spending for goods (table 2). Within services, the largest contributors to the increase were financial services and insurance (led by portfolio management and investment advice services), health care (both hospitals and outpatient services), and recreation services (led by gambling). Within goods, the largest contributors to the increase were motor vehicles and parts (led by new light trucks), other nondurable goods (led by prescription drugs), and gasoline and other energy goods (led by gasoline). 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 $134.7 billion in December (table 2). Personal saving was $766.7 billion in December and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.7 percent (table 1).

Prices

From the preceding month, the PCE price index for December increased 0.2 percent (table 5). Prices for goods decreased 0.2 percent and prices for services increased 0.3 percent. Food prices increased 0.1 percent and energy prices increased 0.3 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 December increased 2.6 percent (table 7). Prices for goods increased less than 0.1 percent, and prices for services increased 3.9 percent. Food prices increased 1.5 percent and energy prices decreased 2.2 percent. Excluding food and energy, the PCE price index increased 2.9 percent from one year ago.

Real PCE

The 0.5 percent increase in real PCE in December reflected an increase of 1.1 percent in spending on goods and an increase of 0.3 percent in spending on services (table 4). Within goods, the largest contributor to the increase was recreational goods and vehicles (led by software). Within services, the largest contributors to the increase were health care (led by outpatient services) and financial services and insurance (led by financial service charges, fees, and commissions). 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 and November. 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 October and November.

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Next release:  February 29, 2024 at 8:30 a.m. EST
Personal Income and Outlays, January 2024