Personal Income & Spending Up in March

Washington, DC, April 30, 2007—Personal rose 0.3% and personal incomes rose 0.7% in March, according to a report issued by the Commerce Department Monday. Adjusted for inflation, spending fell 0.2%.

Nominal spending rose 0.3% in March for its weakest showing since last October. Adjusted for inflation, spending fell 0.2%,

Economists had forecast a 0.5% increase in spending mad a 0.06% increase in incomes.

The core personal consumption expenditure price index was flat in March, bringing the year-over-year increase down to 2.1% from 2.4% in February.

Total inflation rose 0.4% in March and is up 2.4% over the past year.

Wages and salaries were up 0.7 %. Proprietors' income was up 0.2%. Income from assets rose 1.1% for the third straight month.

Real spending on durable goods rose 0.1% in March. Spending on nondurable goods decreased 0.1%. Spending on services fell 0.3%.

Disposable incomes, after taxes, increased 0.7% in March. After adjusting for inflation, disposable incomes rose 0.2%. In the past year, real disposable incomes are up 2.9%.

The personal savings rate improved to negative 0.8% in March from negative 1.2% in February.