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.