Personal Income and Outlays, January 2024

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 $233.7 billion (1.0 percent at a monthly rate) in January, according to estimates released today by the Bureau of Economic Analysis (tables 2 and 3). Disposable personal income (DPI), personal income less personal current taxes, increased $67.6 billion (0.3 percent) and personal consumption expenditures (PCE) increased $43.9 billion (0.2 percent).

The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.4 percent (table 5). Real DPI decreased less than 0.1 percent in January and real PCE decreased 0.1 percent; goods decreased 1.1 percent and services increased 0.4 percent (tables 3 and 4).

The increase in current-dollar personal income in January primarily reflected increases in government social benefits, personal income receipts on assets, and compensation (table 2). The increase in government social benefits was led by social security benefits, reflecting a 3.2 percent cost-of-living adjustment, and other government social benefits, primarily reflecting an increase in Affordable Care Act enrollments. The increase in personal income receipts on assets was led by an increase in personal dividend income, reflecting information from company financial statements.

The $43.9 billion increase in current-dollar PCE in January reflected a $121.0 billion increase in spending for services that was partly offset by a $77.0 billion decrease in spending for goods (table 2). Within services, the largest contributors to the increase were housing and utilities, financial services and insurance (led by financial service charges, fees, and commissions), and health care (led by hospitals). Within goods, the leading contributors to the decrease were motor vehicles and parts (led by new light trucks), gasoline and other energy goods (led by gasoline), and other nondurable goods (led by prescription drugs). Detailed information on monthly PCE spending can be found on Table 2.4.5U.

Personal outlays, the sum of PCE, personal interest payments, and personal current transfer payments, increased $54.3 billion in January (table 2). Personal saving was $779.3 billion in January and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.8 percent (table 1).

Prices

From the preceding month, the PCE price index for January increased 0.3 percent (table 5). Prices for services increased 0.6 percent and prices for goods decreased 0.2 percent. Food prices increased 0.5 percent and energy prices decreased 1.4 percent. Excluding food and energy, the PCE price index increased 0.4 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 January increased 2.4 percent (table 7). Prices for services increased 3.9 percent and prices for goods decreased 0.5 percent. Food prices increased 1.4 percent and energy prices decreased 4.9 percent. Excluding food and energy, the PCE price index increased 2.8 percent from one year ago.

Real PCE

The 0.1 percent decrease in real PCE in January reflected a decrease of 1.1 percent in spending on goods and an increase of 0.4 percent in spending on services (table 4). Within goods, decreases were widespread, led by motor vehicles and parts (mainly new light trucks). Within services, the largest contributor to the increase was housing and utilities (led by 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 July through December. For July through September estimates for compensation, personal taxes, and contributions for government social insurance reflect the incorporation of updated third-quarter wage and salary data from the Bureau of Labor Statistics Quarterly Census of Employment and Wages program. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2017) dollar DPI and PCE, are provided below for November and December.