Personal income increased $80.1 billion (0.4 percent at a monthly rate) in April, according to estimates released today by the Bureau of Economic Analysis (table 3 and table 5). Disposable personal income (DPI) increased $79.4 billion (0.4 percent) and personal consumption expenditures (PCE) increased $151.7 billion (0.8 percent).

The PCE price index increased 0.4 percent. Excluding food and energy, the PCE price index increased 0.4 percent (table 9). Real DPI increased less than 0.1 percent in April and Real PCE increased 0.5 percent; goods increased 0.8 percent and services increased 0.3 percent (table 5 and table 7).

The increase in current-dollar personal income in April primarily reflected increases in compensation and personal income receipts on assets that were partly offset by a decrease in personal current transfer receipts (table 3). The increase in compensation was led by private wages and salaries. The increase in personal income receipts on assets reflected increases in both personal interest income and personal dividend income. The decrease in personal current transfer receipts was led by a decrease in “other” government social benefits.

The $151.7 billion increase in current-dollar PCE in April reflected an increase of $86.9 billion in spending for services and a $64.8 billion in spending for goods (table 3). Within services, the largest contributors to the increase were spending for financial services and insurance, health care, and “other” services (notably professional and other services). Within goods, spending for motor vehicles and parts (led by new motor vehicles) and “other” nondurable goods (notably pharmaceutical products) were the largest contributors to the increase. Detailed information on monthly PCE spending can be found on Table 2.4.5U.

Personal outlays increased $156.0 billion in April (table 3). Personal saving was $802.1 billion in April and the personal saving rate—personal saving as a percentage of disposable personal income—was 4.1 percent (table 1).

Prices

From the preceding month, the PCE price index for April increased 0.4 percent (table 9). Prices for goods increased 0.3 percent and prices for services increased 0.4 percent. Food prices decreased less than 0.1 percent, and energy prices increased 0.7 percent. Excluding food and energy, the PCE price index increased 0.4 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 4.4 percent (table 11). Prices for goods increased 2.1 percent and prices for services increased 5.5 percent. Food prices increased 6.9 percent and energy prices decreased 6.3 percent. Excluding food and energy, the PCE price index increased 4.7 percent from one year ago.

Real PCE

The 0.5 percent increase in real PCE in April reflected an increase of 0.8 percent in spending on goods and an increase of 0.3 percent in spending on services (table 7). Within goods, the largest contributor to the increase was spending for motor vehicles and parts (led by new motor vehicles). Within services, the increase was led by spending for financial services and insurance. 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 (2012) dollar DPI and PCE are provided below for February and March.

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Next release: June 30, 2023, at 8:30 a.m. EDT
Personal Income and Outlays, May 2023