US Personal Spending Takes a Minor Hit in January

According to the latest report from the Bureau of Economic Analysis, personal consumption expenditures (PCE) in the United States experienced a slight downturn in January, decreasing by $30.7 billion or 0.2% on a monthly basis.

Price Index and Income Trends

Despite the dip in spending, the PCE price index saw a 0.3% increase from December 2024, and a 2.5% rise year over year. Excluding the volatile food and energy sectors, the index still managed a 0.3% monthly increase and a 2.6% annual rise.

On a brighter note, personal income in January saw a significant boost, increasing by $221.9 billion or 0.9%, with disposable personal income (DPI) also climbing by 0.9% or $194.3 billion.