The Bureau of Economic Analysis released its latest report on Personal Income. New numbers show that personal income increased $80.1 billion or 0.4 percent at a monthly rate in April 2023.  Disposable personal income (DPI) also increased $79.4 billion or 0.4 percent, and personal consumption expenditures (PCE) increased $151.7 billion or 0.8 percent.

Further analysis showed that the PCE price index increased 0.4 percent. Excluding food and energy, the PCE price index increased 0.4 percent. Real DPI increased less than 0.1 percent in April, and Real PCE increased 0.5 percent. Meanwhile, goods increased 0.8 percent and services increased 0.3 percent.

Experts believe the current-dollar personal income increase is due to increases in compensation and personal income receipts on assets that were partly offset by a decrease in personal current transfer receipts.

The increase in compensation was led by private wages and salaries, with additional increases in personal income receipts on assets reflected increases in both personal interest income and personal dividend income. 

The decrease in personal current transfer receipts was led by a decrease in “other” government social benefits.

An increase of $151.7 billion in current-dollar PCE in April reflected an increase of $86.9 billion in spending for services and $64.8 billion in spending for goods. 

The largest contributors to the increase were spending for financial services and insurance, health care, and “other” services. In the goods category, increases were seen in the areas of spending on motor vehicles and parts.