Input Stories

Input Stories

Personal Consumption Expenditures Were Flat in March

Personal income in the U.S. rose slightly more than expected in March, while personal consumption expenditures were essentially flat, according to the Commerce Department.

The details: Personal income increased 0.3%, the same pace seen in February. Economists had predicted a 0.2% rise.

  • Purchases of durable and nondurable goods dipped 0.9% and 0.4%, respectively, but service-sector spending increased 0.4% in March.
  • Despite some weakness in March, personal spending in the first quarter of 2023 increased 2.1%, with durable and nondurable goods purchases up 4.8% and 1.4%, respectively, reflecting some continued resilience in spending.

Wages and salaries: Wages and salaries increased 0.3% in March, with total manufacturing wages and salaries rising 0.4%.

  • In the past year, total wages and salaries have risen 7.0%, with manufacturing wages and salaries increasing 6.1% year-over-year. 

Disposable income and savings: Real personal disposable income inched up 0.3% in March, with 4.0% growth over the past 12 months when adjusted for chained 2012 dollars.

  • Real personal spending was flat in March but up 1.1% overall for the first quarter.
  • The personal saving rate rose to 5.1% in March from 4.8% in February, the highest rate since December 2021, suggesting that Americans have been holding onto more of their incomes.
View More