Consumers were doing a little better in January as both personal income and disposable personal income (DPI) went up. For that matter, so did spending.
The Commerce Department's Bureau of Economic Analysis (BEA) reports incomes rose $79.6 billion, or 0.5%, last month and disposable personal income (DPI) -- personal income less personal current taxes -- increased $63.5 billion, or 0.5%.
Personal consumption expenditures (PCE) increased $63.0 billion, or 0.5%.
Wages and salaries rose $48.1 billion in January, following an $18.3 billion gain in December. Private wages and salaries were up $43.7 billion, while government wages and salaries increased $4.4 billion, compared with an increase of $2.4 billion in December.
Supplements to wages and salaries advanced $6.5 billion; they were up $5.0 billion in December.
Personal spending and saving
Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- jumped $67.5 billion in January, compared with an increase of $14.3 billion in December.
Personal saving, which is DPI less personal outlays, fell from $709.2 billion in December to $705.1 billion last month. Still, the personal saving rate -- personal saving as a percentage of disposable personal income -- was 5.2%, the same rate as in December.
The full report is available on the BEA website.