Month over month, real personal disposable income declined 4 percent in January, following a 2.7 percent increase in December. December's spike reflected accelerated bonus and dividend payments, presumably made in anticipation of tax hikes.

Real consumer spending increased 0.14 percent in January. Durable goods declined 0.82 percent over the month, nondurables declined 0.29 percent, and spending on services increased 0.25 percent.

Real Personal Consumption Expenditures, seasonally adjusted, year-over-year percent change

Additional detail:

  • Real disposable personal income is personal income minus taxes and adjusted for inflation.