Personal income increased 2.6 percent in December after increasing 1.0 percent in November. Accelerated bonus payments of $30 billion (at an annual rate) in December and $15 billion in November boosted wages and salaries. Accelerated dividend payments of $291.0 billion in December and $25.8 billion in November, made in anticipation of tax law changes, boosted personal dividend income.
Current-dollar disposable personal income (DPI), after-tax income, increased 2.7 percent in December after increasing 1.0 percent in November.
Real DPI, income adjusted for taxes and inflation, grew 2.8 percent in December after increasing 1.3 percent in November.
Real consumer spending, spending adjusted for price changes, increased 0.2 percent in December after increasing 0.6 percent in November.
PCE prices remained flat in December after decreasing 0.2 percent in November.
Personal saving rate
Personal saving as a percent of DPI was 6.5 percent in December, the highest rate since May 2009.
To learn more about personal income and outlays, read the full report.