Personal income in the United States increased by $116.8 billion in March, representing a 0.5% monthly gain, according to the latest data from the US Bureau of Economic Analysis.
Disposable personal income (DPI), income after taxes, also rose by $102.0 billion, matching the 0.5% monthly increase.
Household spending, measured through personal consumption expenditures (PCE), saw a strong increase of $134.5 billion, or 0.7% in March. This reflects continued strength in consumer activity despite ongoing economic uncertainty.
Total personal outlays, which include PCE, interest payments, and transfer payments, climbed by $136.6 billion.
The personal saving level in March reached $872.3 billion, with the personal saving rate, the percentage of disposable income that households save, holding at 3.9%. This marks a stable position as spending continues to grow alongside rising income.
The increase in personal income was primarily fueled by higher employee compensation and proprietors’ income (earnings from self-employment), pointing to continued resilience in the labor market and small business activity.
Price pressures showed a slight easing in March:
Over the past 12 months, the PCE price index rose by 2.3%, while core PCE inflation stood at 2.6%, indicating continued moderation in overall inflation and potentially supporting a more flexible monetary policy outlook going forward.
Source: US Bureau of Economic Analysis
The US Dollar Index hovered near 99.4 as weak GDP and revived Trump tariffs added uncertainty. Fed’s Daly signaled possible 2025 cuts but urged patience. The euro steadied near $1.13 on soft inflation in Spain and France, increasing ECB cut expectations. The pound stayed around $1.35 amid UK trade optimism and pension reform plans. Weak US data supported Fed cut bets. The yen weakened despite strong Tokyo inflation, with some support from safe-haven demand. A BOJ hike is expected in July.
Detail Tariff News Lifts Dollar, Pressures EUR and Gold (05.30.2025)The EUR/USD pair slipped after a brief rebound, pressured by renewed USD strength and the reactivation of Trump-era tariffs.
DetailThe U.S. labor market showed fresh signs of strain as initial jobless claims rose by 14,000 to 240,000 in the week ending May 24, according to seasonally adjusted data released by the Department of Labor.
DetailThen Join Our Telegram Channel and Subscribe Our Trading Signals Newsletter for Free!
Join Us On Telegram!