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Friday, February 24, 2023 Contact: Connie O’Connell, (301) 278-9003 Personal Income and Outlays, January 2023 Personal income increased $131.1 billion, or 0.6 percent at a monthly rate, while consumer spending increased $312.5 billion, or 1.8 percent, in January. The increase in personal income primarily reflected an increase in compensation. Government social benefits decreased in January, reflecting a decrease in “other” benefits that was partly offset by an increase in Social Security. The personal saving rate (that is, personal saving as a percentage of disposable personal income) was 4.7 percent in January, compared with 4.5 percent in December. Personal Income, Outlays, and Saving 5 4 Percent 3 Personal income, % change from prior period Outlays, % change from prior period 2 Personal saving as a % of DPI 1 0 -1 Jul. Aug. Sep. Oct. Nov. Dec. Jan. 2022 U.S. Bureau of Economic Analysis 2023 Seasonally adjusted Personal income In January, personal income increased, primarily reflecting an increase in compensation. • Within compensation, the increase primarily reflected an increase in private wages and salaries, based on data from the Bureau of Labor Statistics’ Current Employment Statistics. The increase reflected increases of $78.0 billion in services-producing industries and $22.0 billion in goods-producing industries. • Government social benefits decreased in January, reflecting a decrease in “other” benefits that was partly offset by an increase in Social Security. o The decrease in “other” benefits primarily reflected the expiration of the extended child tax credit (as authorized by the American Rescue Plan) as well as a decline in one-time refundable tax credits issued by states. o The increase in Social Security primarily reflected an 8.7 percent cost-of-living adjustment. BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and regional economic data—are available at www.bea.gov. E-mail alerts are also available. Estimates of February 2023 Personal Income and Outlays will be released on March 31, 2023. Consumer spending Personal outlays increased in January, primarily reflecting an increase in consumer spending for both goods and services. • Within services, the largest contributor to the increase was food services and accommodations (led by purchased meals and beverages), based primarily on Census MRTS data. Month-to-Month Change in Consumer Spending Consumer spending Goods Services 3.0 2.5 2.0 1.5 Percent • Within goods, the largest contributors to the increase were motor vehicles and parts (led by new light trucks), based on unit sales data from Wards Intelligence, and “other” nondurable goods (led by pharmaceutical products and recreational items), based primarily on Census Bureau Monthly Retail Trade Survey (MRTS) data. 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 Jul. Aug. Sep. Oct. Nov. 2022 Dec. Jan. 2023 U.S. Bureau of Economic Analysis Seasonally adjusted Changes in Monthly Consumer Spending, January 2023 Consumer spending increased $312.5 billion Motor vehicles and parts Food services and accommodations Other nondurable goods Clothing and footwear Health care Recreational goods and vehicles Other services Furnishings and durable household equipment Financial services Recreation services Transportation services Housing and utilities Other durable goods Food and beverages Final expenditures of NPISHs Gasoline and other energy goods -1.1 U.S. Bureau of Economic Analysis 78.1 69.4 24.3 17.9 17.3 17.0 16.7 13.7 13.1 13.1 11.3 8.8 7.9 4.5 0.5 Billions of dollars Seasonally adjusted annual rates Page 2 of 3 PCE price index The personal consumption expenditures (PCE) price index for January increased 5.4 percent from one year ago, reflecting increases in both goods and services. Energy prices increased 9.6 percent while food prices increased 11.1 percent. Excluding food and energy, the PCE price index for January increased 4.7 percent from one year ago. Percent Change in PCE Price Indexes from Month One Year Ago PCE 8.0 PCE excluding food and energy 7.0 Percent 6.0 5.0 4.0 3.0 0.0 Jan. Feb. Mar. Apr. May Jun. 2022 U.S. Bureau of Economic Analysis Jul. Aug. Sep. Oct. Nov. Dec. Jan. 2023 Seasonally adjusted Compared to December, the PCE price index increased 0.6 percent. Energy prices increased 2.0 percent and food prices increased 0.4 percent. Excluding food and energy, the PCE price index increased 0.6 percent from December to January. For a comparison of PCE prices to BLS consumer price indexes, refer to NIPA Table 9.1U. Reconciliation of Percent Change in the CPI with Percent Change in the PCE Price Index. Real disposable personal income and consumer spending Real disposable personal income increased 1.4 percent in January and real consumer spending increased 1.1 percent; spending on goods increased 2.2 percent and spending on services increased 0.6 percent. Within goods, increases in motor vehicles and parts as well as recreational goods were partly offset by a decrease in gasoline. Within services, an increase in food services and accommodations was partly offset by a decrease in housing and utilities (notably, utilities). Page 3 of 3
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