Income and Spending: What's the Deal in March 2025?

The latest numbers are in, and it looks like people in the U. S. had a bit more cash to spend in March 2025. Personal income saw a boost of $116. 8 billion, which is about a 0. 5% increase from the previous month. This means that after taxes, folks had around $102. 0 billion more to play with, and they did just that. Personal spending went up by $134. 5 billion, showing that people were willing to open their wallets. But where did all this money go? Well, a good chunk of it was spent on goods and services. Goods saw a $54. 5 billion increase, while services got a $79. 9 billion boost. This makes sense when you think about it. As the economy improves, people tend to spend more on experiences and non-essential items. Now, let's talk about savings. In March, people managed to save about $872. 3 billion, which is roughly 3. 9% of their disposable income. This might seem like a lot, but it's actually a decrease from previous months. It's a reminder that even when times are good, it's important to keep an eye on savings. The price of goods and services, known as the PCE price index, saw a slight decrease of less than 0. 1% from the previous month. However, when you look at the bigger picture, prices have increased by 2. 3% compared to the same month last year. If you exclude food and energy, the increase is even higher at 2. 6%. This is a good example of how inflation can sneak up on you. So, what does all this mean? Well, it's a mixed bag. On one hand, people have more money to spend, which is great for the economy. On the other hand, prices are going up, which can eat into those savings. It's a good reminder to keep an eye on both income and expenses. It's also worth noting that the increase in income was mainly due to compensation and proprietors’ income. This means that people are either earning more at their jobs or making more money from their own businesses. This is a positive sign for the economy, as it shows that people are finding ways to increase their income.