Personal Income increased 21.1% in March, Spending increased 4.2%

The BEA released the Personal Income and Outlays report for March:

Personal income increased $4.21 trillion (21.1 percent) in March according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $4.18 trillion (23.6 percent) and personal consumption expenditures (PCE) increased $616.0 billion (4.2 percent).

Real DPI increased 23.0 percent in March and Real PCE increased 3.6 percent; goods increased 7.3 percent and services increased 1.7 percent. The PCE price index increased 0.5 percent. Excluding food and energy, the PCE price index increased 0.4 percent .
emphasis added

The March PCE price index increased 2.3 percent year-over-year and the March PCE price index, excluding food and energy, increased 1.8 percent year-over-year.

The following graph shows real Personal Consumption Expenditures (PCE) through March 2021 (2012 dollars). Note that the y-axis doesn’t start at zero to better show the change.

Personal Consumption Expenditures Click on graph for larger image.

The dashed red lines are the quarterly levels for real PCE.

Personal income was slightly above expectations (boosted by American Rescue Act),  and the increase in PCE was at expectations.