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 annual inflation rate in the United States rose to 2.4% in May 2025, up from 2.3% in April, marking the first increase since January.
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