Economy Watch: Income, Personal Spending See Uptick

Personal income increased 0.3 percent, or $50.2 billion, in December, according to the Bureau of Economic Analysis.
Personal Income and Outlays: December 2016, Source: Bureau of Economic Analysis

Personal Income and Outlays: December 2016, Source: Bureau of Economic Analysis

Personal income among Americans increased $50.2 billion, or 0.3 percent in December, according to the Bureau of Economic Analysis on Monday. Disposable personal income, which is income after taxes, likewise was up 0.3 percent for the month. Even better for the pace of economic growth: personal consumption expenditures—people out spending their money— increased $63.1 billion, 0.5 percent for the month.

However, income growth for the year wasn’t quite so peppy in 2016. Personal income increased 3.5 percent in 2016 compared to 2015, as opposed to an increase of 4.4 percent in 2015 compared to the previous year. In 2016, personal consumption expenditures increased 3.8 percent, compared with an increase of 3.5 percent in 2015.