bee Calculated Risk On 2/28/2025 08:30:00 AM
The Bea Released the Personal Income and Outlays, January 2025 Report for January:
Personal Income Increased $ 221.9 Billion (0.9 Percent at A Monthly Rate) in Januaryaccording to estimates released today by the US Bureau of Economic Analysis. Disposable Personal Income (DPI) —Personal Income Less Personal Current Taxes –Increased $ 194.3 Billion (0.9 Percent) and Personal Consumption Expenditures (PCE) Decreased $ 30.7 Billion (0.2 Percent).
Personal Outlays – The Sum of PCE, Personal Interest Payments, and Personal Current Transfer Payments –Decreased $ 52.7 Billion in January. Personal Saving was $ 1.01 trillion in January and the personal saving rate –personal saving as a percentage of disposable personal income – was 4.6 percent.
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From the Preceding Month, the PCE Price Index for January increased 0.3 percent. Excluding Food and Energy, The PCE Price Index increased 0.3 percent.
Emphasis added
The January PCE Price Index increased 2.5 percent year-over-year (yoy), down from 2.6 percent yoy in December, and down from the recent peak of 7.0 percent in June 2022.
The following graph shows real personal consumption Expenditures (PCE) through January 2025 (2017 dollars). Note that the y-axis do not start at zero to better show the change.
Click on graph for larger image.
The dashed red lines are the quarterly levels for real pce.
Personal Income was well above expectations, and PCE was below expectations.
Inflation was close to expectations.