The U.S. Commerce Department’s Bureau of Economic Analysis reported on personal income and outlays for December 2010, showing 0.4 percent growth in personal income and real personal consumption expenditures in December. The department said this was consistent with private-sector expectations and noted that in November, personal income rose a similar 0.4 percent.
Personal income increased by $54.5 billion, or 0.4 percent, and disposable personal income (DPI) increased $47.3 billion, or 0.4 percent, in December, according to the bureau.
Personal consumption expenditures (PCE) increased $69.5 billion, or 0.7 percent. In November, personal income increased $44.9 billion, or 0.4 percent, DPI increased $39.0 billion, or 0.3 percent and PCE increased $35.4 billion, or 0.3 percent, based on revised estimates.
Real disposable income increased 0.1 percent in December, compared with an increase of 0.2 percent in November. Real PCE increased 0.4 percent, compared with an increase of 0.2 percent.
"Today’s data show consumer spending clearly accelerated at the end of last year,” said Rebecca Blank, the acting deputy secretary of the Commerce Department. “Personal income also posted stronger gains in the fourth quarter compared to the third. Looking ahead, we expect disposable personal income to get a boost from the Middle Class Tax Relief Act of 2010, which increases the take-home pay of many working families. Taken together, we expect these income and spending data to support stronger economic growth in 2011."