Credit union members may have more disposable income if they are among individuals whose personal income increased $40.7 billion (0.2%) in December. That’s according to estimates released recently by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $30.6 billion (0.2%), and personal consumption expenditures (PCE) increased $46.6 billion (0.3%).
The increase in personal income in December primarily reflected increases in compensation of employees and personal interest income that were partially offset by a decrease in farm proprietors’ income. The $6.8 billion increase in real PCE in December reflected an increase of $2.5 billion in spending on goods and a $4.4 billion increase in spending on services. Within goods, spending on prescription drugs was the leading contributor to the increase. Within services, the largest contributor to the increase was spending on health care.
Personal outlays increased $51.5 billion in December. Personal saving was $1.28 trillion in December and the personal saving rate, personal saving as a percentage of disposable personal income, was 7.6%.
When personal income and spending are up, it’s a good time for members to invest in home improvements. LEVERAGE offers prime loan opportunities through its partner, LENDKEY.