Saturday , May 15 2021
Home / BEA / Personal Income and Outlays, March 2021

Personal Income and Outlays, March 2021

Summary:
Personal income increased .21 trillion (21.1 percent) in March according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased .18 trillion (23.6 percent) and personal consumption expenditures (PCE) increased 6.0 billion (4.2 percent). Real DPI increased 23.0 percent in March and Real PCE increased 3.6 percent; goods increased 7.3 percent and services increased 1.7 percent (tables 5 and 7). The PCE price index increased 0.5 percent. Excluding food and energy, the PCE price index increased 0.4 percent (table 9). COVID-19 Impact on March 2021 Personal Income and Outlays The estimate for March personal income and outlays was impacted by the continued government response to COVID-19. Economic impact payments

Topics:
Bureau of Economic Analysis considers the following as important:

This could be interesting, too:

James Picerno writes The ETF Portfolio Strategist: 14 May 2021

Calculated Risk writes Fannie and Freddie: REO inventory declined in Q1, Down 58% Year-over-year

Calculated Risk writes May 14th COVID-19 New Cases, Hospitalizations; 7-Day Average Cases Lowest Since June 25, 2020

Lambert Strether writes 2:00PM Water Cooler 5/14/2021

Personal income increased $4.21 trillion (21.1 percent) in March according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $4.18 trillion (23.6 percent) and personal consumption expenditures (PCE) increased $616.0 billion (4.2 percent).

Real DPI increased 23.0 percent in March and Real PCE increased 3.6 percent; goods increased 7.3 percent and services increased 1.7 percent (tables 5 and 7). The PCE price index increased 0.5 percent. Excluding food and energy, the PCE price index increased 0.4 percent (table 9).

COVID-19 Impact on March 2021 Personal Income and Outlays

The estimate for March personal income and outlays was impacted by the continued government response to COVID-19. Economic impact payments associated with the American Rescue Plan Act of 2021 (which was enacted on March 11, 2021) were distributed in March. The full economic effects of the COVID-19 pandemic cannot be quantified in the personal income and outlays estimate because the impacts are generally embedded in source data and cannot be separately identified. For more information, see Effects of Selected Federal Pandemic Response Programs on Personal Income.
  2020 2021
Nov. Dec. Jan. Feb. Mar.
Percent change from preceding month
Personal income:  
     Current dollars -1.2 0.5 10.3 -7.0 21.1
Disposable personal income:  
     Current dollars -1.4 0.6 11.6 -7.9 23.6
     Chained (2012) dollars -1.4 0.2 11.3 -8.1 23.0
Personal consumption expenditures (PCE):  
     Current dollars -0.6 -0.6 3.4 -1.0 4.2
     Chained (2012) dollars -0.6 -0.9 3.1 -1.2 3.6
Price indexes:  
     PCE 0.0 0.4 0.3 0.2 0.5
     PCE, excluding food and energy 0.0 0.3 0.2 0.1 0.4
Price indexes: Percent change from month one year ago
     PCE 1.1 1.2 1.4 1.5 2.3
     PCE, excluding food and energy 1.3 1.4 1.4 1.4 1.8

The increase in personal income in March largely reflected an increase in government social benefits (table 3). Within government social benefits, “other” social benefits increased. The American Rescue Plan Act established an additional round of direct economic impact payments to households.

The $616.0 billion increase in current dollar PCE in March reflected an increase of $403.0 billion in spending for goods and a $213.1 billion increase in spending for services (table 3). Within goods, both nondurable (led by “other” nondurable goods, which includes recreational items like games, toys, and hobbies) and durable goods (led by motor vehicles and parts) contributed to the increase. Within services, the largest contributor to the increase was spending for food services and accommodations. Detailed information on monthly PCE spending can be found on Table 2.3.5U.

Personal outlays increased $616.4 billion in March (table 3). Personal saving was $6.04 trillion in March and the personal saving rate—personal saving as a percentage of disposable personal income—was 27.6 percent (table 1).

Annual Update of the National Economic Accounts

BEA will release results from the 2021 annual update of the National Economic Accounts, which includes the National Income and Product Accounts (NIPAs) as well as the Industry Economic Accounts, later this year. Updated monthly personal income and outlays will be released on July 30, 2021, along with the June 2021 estimate. For more information, see the GDP Technical Note.

Updates to Personal Income and Outlays

Estimates have been updated for January and February. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2012) dollar DPI and PCE, are shown below. 

  Change from preceding month
January February
Previous Revised Previous Revised Previous Revised Previous Revised
(Billions of dollars) (Percent) (Billions of dollars) (Percent)
Personal income:  
     Current dollars 1,970.9 2,007.0 10.1 10.3 -1,516.6 -1,503.3 -7.1 -7.0
Disposable personal income:  
     Current dollars 1,971.4 2,001.9 11.4 11.6 -1,532.3 -1,519.9 -8.0 -7.9
     Chained (2012) dollars 1,701.9 1,736.2 11.1 11.3 -1,398.5 -1,389.0  -8.2 -8.1
Personal consumption expenditures:  
     Current dollars 487.9 485.2 3.4 3.4 -149.0 -150.8 -1.0 -1.0
     Chained (2012) dollars 391.2 394.3 3.0 3.1 -162.7 -165.1 -1.2 -1.2

*          *          *

Next release: May 28, 2021 at 8:30 A.M. EDT
Personal Income and Outlays, April 2021

*          *          *

Bureau of Economic Analysis
The BEA Advisory Committee advises the Director of BEA on matters related to the development and improvement of BEA’s national, regional, industry, and international economic accounts, especially in areas of new and rapidly growing economic activities arising from innovative and advancing technologies, and provides recommendations from the perspectives of the economics profession, business, and government.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.