US Personal Spending Declines in January

In a recent report by the Bureau of Economic Analysis, it was revealed that personal consumption expenditures (PCE) in the United States experienced a slight decrease in January. The figures show a $30.7 billion or 0.2% drop on a monthly basis, marking a notable shift in consumer behavior.

PCE Price Index Shows Growth

Despite the downturn in spending, the PCE price index saw a 0.3% increase from December 2024, and a significant 2.5% rise compared to the previous year. When excluding food and energy, the index still showed a robust growth of 0.3% from the prior month and a 2.6% increase year over year.

Personal Income on the Rise

On a brighter note, personal income in January saw an uptick, increasing by $221.9 billion or 0.9%. Similarly, disposable personal income (DPI) enjoyed a 0.9% boost, amounting to a $194.3 billion rise, indicating a potential for future spending recovery.