Driven mostly by the rise in compensation of employees and assets revenue, personal income increased by 57.4 billion in March as it grew at a seasonally adjusted rate of 0.4 percent, reports the NAHB’s Eye on Housing blog. The rise in personal compensation totaled $34.6 billion and assets revenue was $12.6 billion.
Disposable personal income also continued to rise steadily as it grew at a rate of 4.0 percent while personal consumption expenditures grew by 3.5 percent. March also saw 5.4 percent of disposable income go toward personal savings, which was 0.3 percent higher than the revised savings rate of 5.1 percent in January.
At the start of the Great Recession and then again in early 2013, there was a spike in the savings rate, as households tried to repair their balance sheets. Unfortunately, this process also left less money available for consumption and held back GDP growth.
For the full report from NAHB and to view accompanying charts, follow the link below.