Personal income grew by $57.4 billion in March, according data from the Bureau of Economic Analysis and reported by Na Zhao of the NAHB's Eye on Housing blog . That's a seasonally adjusted annual rate of 0.4%
Income growth ($34.6 billion) and assets revenue ($12.6 billion) drove the gains.
Disposable personal income – income remaining after deducting personal income taxes – continued its steady growth, and so did personal consumption expenditures. In March, disposable personal income grew at a rate of 4.0% and personal consumption expenditures grew by 3.5%.
Americans are putting more into savings as 5.4% of personal income growth went to savings.
The savings rate rose with the onset of the Great Recession as households repaired their balance sheets. However, this process of deleveraging held back GDP growth due to reduced consumption.