Personal Income and Outlays, March 2023

Historical release narrative reproduced from the official public-domain U.S. Bureau of Economic Analysis source. Statistical tables, charts, standard technical appendices and administrative material are omitted; formatting is adapted for reading. Figures retain the release's original vintage and may have been revised. Consult the linked source for the complete release and current data.

Personal income increased $67.9 billion (0.3 percent) in March, according to estimates released today by the Bureau of Economic Analysis (table 3 and table 5). Disposable personal income (DPI) increased $71.7 billion (0.4 percent) and personal consumption expenditures (PCE) increased $8.2 billion (less than 0.1 percent).

The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.3 percent (table 9). Real DPI increased 0.3 percent in March and Real PCE decreased less than 0.1 percent; goods decreased 0.4 percent and services increased 0.1 percent (tables 5 and 7).

The increase in current-dollar personal income in March primarily reflected increases in compensation, personal income receipts on assets, and rental income of persons that were partly offset by decreases in proprietors’ income and personal current transfer receipts (table 3). The increase in compensation was led by private wages and salaries. The increase in personal income receipts on assets reflected an increase in personal dividend income that was partly offset by a decrease in personal interest income. The decrease in proprietors’ income reflected a decrease in farm income that was partly offset by an increase in nonfarm income. The decrease in personal current transfer receipts was led by a decrease in “other” government social benefits that primarily reflected the end of pandemic-related emergency benefits for the Supplemental Nutrition Assistance Program.

The $8.2 billion increase in current-dollar PCE in March reflected a $44.9 billion increase in spending for services that was partly offset by a $36.7 billion decrease in spending for goods (table 3). Within goods, the decrease was led by motor vehicles and parts and gasoline and other energy goods. Within services, the largest contributors to the increase were spending for housing and utilities and health care services. Detailed information on monthly PCE spending can be found on Table 2.4.5U.

Personal outlays increased $21.5 billion in March (table 3). Personal saving was $1.00 trillion in March and the personal saving rate—personal saving as a percentage of disposable personal income—was 5.1 percent (table 1).

Prices

From the preceding month, the PCE price index for March increased 0.1 percent (table 9). Prices for goods decreased 0.2 percent and prices for services increased 0.2 percent. Food prices decreased 0.2 percent and energy prices decreased 3.7 percent. Excluding food and energy, the PCE price index increased 0.3 percent. Detailed monthly PCE price indexes can be found on Table 2.4.4U.

From the same month one year ago, the PCE price index for March increased 4.2 percent (table 11). Prices for goods increased 1.6 percent and prices for services increased 5.5 percent. Food prices increased 8.0 percent and energy prices decreased 9.8 percent. Excluding food and energy, the PCE price index increased 4.6 percent from one year ago.

Real PCE

The decrease of less than 0.1 percent in real PCE in March reflected a decrease of 0.4 percent in spending on goods that was partly offset by an increase of 0.1 percent in spending on services (table 7). Within goods, a decrease in motor vehicles and parts was partly offset by an increase in gasoline and other energy goods. Within services, the increase was led by housing and utilities. Detailed information on monthly real PCE spending can be found on Table 2.4.6U.

Updates to Personal Income and Outlays

Estimates have been updated for January and February. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2012) dollar DPI and PCE, are provided below.