Source: Bureau of Economic Analysis
Personal income increased for the third straight month in December, albeit at a slower pace, as proprietors’ income slipped during the period.
- Personal income increased by $70.7 billion or 0.3% in December. This compares with the 0.5% growth in November and marks the third straight month of expansion.
- Growth is attributed to higher compensation, with increases recorded in both private and government wages and salaries.
- This was partly offset by proprietors’ income, as declines were recorded in both nonfarm and farm income during the month.
- Disposable personal income increased $39.9 billion or 0.2%, the slowest growth in four months since September’s 1.3% decline. Real DPI fell 0.2%.
- Personal consumption expenditures fell by $95.2 billion or 0.6%, marking the first contraction in months. Real PCE slipped by 3.1%.