Total personal income increased to $15,648 billion in December 2015, reports National Association of Home Builders economics analyst Na Zhao. The total is up by 0.3% from the previous month, according to the most current data from the Bureau of Economic Analysis. For the year, personal income growth saw its highest increase of .64% in April after a 0% increase (the lowest) in March.
Disposable personal income increased by 3.1% year-over-year in December, while personal consumption expenditures grew 2.6% year-over-year.
Higher growth of personal disposable income compared to that of personal consumption expenditures imply a higher saving rate. The saving rate reached 5.52% in December 2015, the highest level after the tax policy-related spike at the end of 2012. The savings rate rose with the onset of the Great Recession as households repaired their balance sheets. But this process of deleveraging held back GDP growth due to reduced consumption.