The Bureau of Economic Analysis (BEA) announced on Monday, May 3, that Americans’ personal disposable income (PDI) increased by 0.3% in March 2010, compared to a 0.1% increase in February 2010, while personal consumption expenditures (PCE), rose 0.6% in March, compared to a 0.5% rise in February.
Real disposable income–DPI adjusted to remove price changes–increased 0.2% in March, the BEA reported, compared with an increase of less than 0.1% in February, while real PCE–similarly, PCE adjusted to remove price changes–increased 0.5% percent, the same increase as in February 2010.
The rise in PCE was paced by purchases of durable goods (notably cars and car parts), which rose 3.4% in March, compared with an increase of 1.0% in February. Purchases of nondurable goods rose only 0.4% in March, compared to a 0.7% increase in February.
One particularly bright spot came in private wage and salary disbursements, which increased a total of $11.8 billion in March, compared with an increase of $6.8 billion in February.
Read the entire BEA report here.