{"id":60768,"date":"2025-01-31T21:35:09","date_gmt":"2025-01-31T21:35:09","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/real-estate\/personal-income-rises-0-4-in-december\/"},"modified":"2025-01-31T21:35:09","modified_gmt":"2025-01-31T21:35:09","slug":"personal-income-rises-0-4-in-december","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=60768","title":{"rendered":"Personal Income Rises 0.4% in December"},"content":{"rendered":"


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Personal income increased by 0.4% in December, following a 0.3% rise in November and a 0.7% gain in October, according to the latest data from the Bureau of Economic Analysis. The gains in personal income were largely driven by higher wages and salaries. However, the pace of personal income growth slowed from its peak monthly gain of 1.4% in January 2024.<\/p>\n

Real disposable income, the amount remaining after adjusted for taxes and inflation, inched up 0.1% in December, matching November\u2019s gain and following a 0.4% increase in October. On a year-over-year basis, real (inflation-adjusted) disposable income rose 2.4%, down from a 6.5% year-over-year peak recorded in June 2023.<\/p>\n

Meanwhile, personal consumption expenditures rose 0.7% in December, building on a 0.6% increase in November and 0.5% in October. Real spending, adjusted to remove inflation, increased 0.4% in December, with expenditures on goods climbing 0.7% and spending on services up 0.3%.<\/p>\n

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As spending outpaced personal income growth, the personal savings rate dipped to 3.8% in December, down from 4.1% in November and 4.3% in October. With inflation eroding compensation gains, people are dipping into savings to support spending. This trend will ultimately lead to a slowing of consumer spending.<\/p>\n

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Personal income increased by 0.4% in December, following a 0.3% rise in November and a 0.7% gain in October, according to the latest data from the Bureau of Economic Analysis. The gains in personal income were largely driven by higher wages and salaries. 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