Personal income in America rose by $58.7bn in December, according to estimates released today – a rise of 0.4% on the previous month.
But the increase, mainly from wages, came at the expense of savings, which fell to $351.6bn in December – the lowest level in a decade.
Disposable personal income increased by 0.3% on November’s figures to $48.0bn, while personal consumption expenditure (PCE) increased by 0.4% to $54.2bn.
Real PCE increased $34.4bn, or 0.3%, according to the figures from the US Bureau of Economic Analysis.
Personal income increased 3.1% overall in 2017 on the 2016 level, compared with an increase of 2.4% in 2016, while disposable personal income increased 2.9% on 2016.
New motor vehicles
Personal consumption expenditure increased 4.5%, compared with an increase of 4.0% in 2016. Real PCE increased 2.7%, the same increase as in 2016.
The PCE price index rose 0.1% overall in December; excluding food and energy, the index increased 0.2%.
The increase in personal income in December primarily reflected increases in wages and salaries and personal interest income.
The $34.4bn increase in real PCE in December reflected an increase of $11.1bn in spending for goods and a $23.2bn increase in spending for services.
New motor vehicles were the leading contributor to the increase in spending on goods, while for services, the largest increase was due to spending on electricity and gas.