Real Disposable Personal Income Grew 3.3% in January

From Table 10 in yesterday's BEA report on Personal Income and Outlays, real disposable personal income increased by 3.3% in January, compared to the same month a year ago. This is highest growth in real disposable income since last May, and the second highest growth rate in the last 18 months. It's also a full percentage point above the 2.3% average during the last four years.

Comments

[Bartlesby]

...and personal savings jumped to an annual rate of $545.5 billion, the highest level since monthly records began in 1959. The rate of saving jumped to 5%, the largest increase since March 1995.

The improvement in real income certainly helps to shore up household finances, but let's keep perspective on this point. Income is moving heavily into savings right now, not consumption.

2009 Mar 03 02:34 PM