Personal Income Expands for Third Consecutive Month

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%.

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