Real consumer spending increased 0.32 percent in March. The strength came form spending on services, which rose 0.63 percent. Spending on durable and nondurables declined 0.04 and 0.37 percent, respectively (month-over-month changes not pictured).
Real personal disposable income grew 0.3 percent in March and 0.73 percent in February but is not quite back to November levels. The savings rate remained at 2.7 percent, about 1 point below the average rate in 2012.
Additional detail:
- The spike in income in December reflected accelerated bonus and dividend payments, presumably made in anticipation of tax hikes.
- With the expiration of the payroll tax holiday, the amount of money withheld from paychecks for government social insurance and personal taxes increased in January, contributing to the drop in personal disposable income (month-to-month changes not pictured).
- Real disposable personal income is personal income minus taxes and adjusted for inflation.