March 3, 2014

Personal income increased 0.3 percent in January after remaining flat in December, in part reflecting increases in Medicaid and other government social benefits due to the Affordable Care Act (ACA). Excluding all special factors, personal income rose 0.2 percent in January, following a decrease of 0.1 percent in December.

Current-dollar disposable personal income (DPI),
after-tax income, increased 0.4 percent in January after decreasing 0.1 percent in December.

Real DPI, income adjusted for taxes and inflation, increased 0.3 percent in January after decreasing 0.2 percent in December.

Real consumer spending, spending adjusted for price changes, increased 0.3 percent in January after decreasing 0.1 percent in December. Spending on services turned up in January, reflecting a turnaround in utilities and stronger growth in health care spending.

PCE prices increased 0.1 percent in January after increasing 0.2 percent in December. Excluding food and energy, PCE prices rose 0.1 percent in January.

Personal saving rate
Personal saving as a percent of DPI was 4.3 percent in January, the same as December.