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MONDAY March 2, 2009

CONSUMER SPENDING TURNS UP IN JANUARY

Personal income grew 0.4 percent in January. Wages and
salaries, the largest component of personal income, fell 0.2
percent after falling 0.4 percent in December. The January
timing of pay raises boosted government wages, and cost-ofliving adjustments to social security and other programs
boosted transfers. Excluding these and other special items,
personal income rose 0.2 percent after falling 0.3 percent.
Real disposable personal income (DPI), income adjusted
for inflation and taxes, rose 1.5 percent in January.
Real consumer spending, adjusted for price changes, turned
up, rising 0.4 percent in January after falling 0.5 percent in
December. Spending on food and energy turned up.

Average
growth,
last 12
months

December January

Personal
Income

0.2 %

–0.2 %

0.4 %

Real DPI

0.3 %

0.4 %

1.5 %

–0.1 %

–0.5 %

0.4 %

0.1%

–0.5 %

0.2 %

Real
PCE

PCE
Prices

PCE prices increased 0.2 percent in January. Excluding
food and energy, price growth was close to zero.
12-month December
average
Personal saving as a percent of disposable income rose to
5.0 percent in December.

Personal
Saving
Rate

2.2%

3.9 %

January

5.0 %

Real Disposable Personal Income and
Real Consumer Spending
2.0

Percent change (monthly)

1.5

Real Disposable
Personal Income

1.0

0.5

0.0

Real Consumer
Spending

-0.5

-1.0

Oct

Nov

Dec

Jan

BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and
economic data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts are also available.
NOTE: On March 27, 2009, the February estimates of Personal Income and Outlays will be released.
Contact: Ralph Stewart 202–606–2649

Bureau of Economic Analysis, U.S. Department of Commerce