According to the United States Department of Commerce Bureau of Economic Analysis, personal income increased $143.2 billion, or 1.1%, in February while disposable personal income increased $127.8 billion, also up 1.1%. Personal consumption expenditures increased $77.2 billion, or 0.7%, in the month.
In contrast, during January, personal income decreased $513.5 billion, or 3.7%, DPI decreased $498.3 billion, or 4%, and PCE increased $40.8 billion, or 0.4%, based on revised estimates.
Real disposable income increased 0.7% in February, in contrast to a decrease of 4% in January. Real PCE increased 0.3% in February, the same increase as in January.
The bureau noted that January figures reflected the effect of special factors such as the expiration of the “payroll tax holiday” and the acceleration of bonuses and personal dividends to December in anticipation of changes in individual tax rates. Excluding such special factors and others, DPI, for example, increased $46.8 billion in February, or 0.4%, after increasing $15.8 billion, or 0.1%, in January.
Monthly estimates are expressed at seasonally adjusted annual rates, the bureau stated. “Real” estimates are expressed in 2005 dollars.