by Risk calculated on 03/31/2023 08:36:00
The BEA published the Personal income and expenses February report:
Personal income rose $72.9 billion (0.3%) in February, according to estimates released today by the Bureau of Economic Analysis. Personal disposable income (DPI) increased by $89.9 billion (0.5%) and personal consumption expenditure (PCE) increased by $27.9 billion (0.2%).
The PCE price index rose 0.3%. Excluding food and energy, the PCE price index also rose 0.3%. The Real DPI rose 0.2% in February and the Real PCE fell 0.1%; goods and services each fell 0.1%.
The February PCE price index rose 5.0% year-on-year (YoY), up from 5.3% year-on-year in January and from the recent peak of 7.0% in June 2022 .
The following chart shows real personal consumption expenditure (PCE) through February 2023 (in 2012 dollars). Note that the y axis does not start at zero to better show the change.
Click on the graphic to enlarge the image.
The dotted red lines are the quarterly levels of the real PCE.
Personal income was in line with expectations and the increase in PCE was lower than expected.
Using the two-month method to estimate real PCE growth in the first quarter, real PCE was growing at an annual rate of 4.0% in the first quarter of 2023. (Using the mid-month method, real PCE was growing 4.7%)