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THURSDAY April 30, 2009

CONSUMER SPENDING DECLINES IN MARCH

Personal income declined 0.3 percent in March. Wages and
salaries, the largest component of personal income, fell 0.5
percent after falling 0.4 percent in February. Proprietors’
income (mainly from partnerships and sole proprietorships)
turned down.
Real disposable personal income (DPI), income adjusted
for inflation and taxes, was flat in March. Taxes fell $33
billion after falling $25 billion. Tax credits from the
American Recovery and Reinvestment Act of 2009 reduced
taxes $11 billion in March.
Real consumer spending, adjusted for price changes,
decreased 0.2 percent in March after increasing 0.1 percent
in February.

Average
growth,
last 12
months

February

March

Personal
Income

0.0 %

–0.2 %

–0.3 %

Real DPI

0.2 %

–0.3 %

0.0 %

–0.1 %

0.1 %

–0.2 %

0.1 %

0.3%

0.0 %

12-month
average

February

March

2.8%

4.0 %

4.2 %

Real
PCE

PCE
Prices

PCE prices were essentially flat in March after increasing
0.3 percent. Excluding food and energy, prices rose 0.2
percent, the same as in February.

Personal saving as a percent of disposable income rose to
4.2 percent in March.

Personal
Saving
Rate

Real Disposable Personal Income and
Real Consumer Spending

Percent change (monthly)

1.5

1.0

Real Disposable Personal
Income

0.5

0.0

Real Consumer Spending

-0.5

-1.0

Dec

Jan

Feb

Mar

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 June 1, 2009, the April estimates of Personal Income and Outlays will be released.
Contact: Ralph Stewart 202–606–2649

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