Compared to a year ago, rental income topped the charts, up 5.5%, as high home prices are pushing up rents. Personal current transfer receipts were up 3.1%, led by a sharp 6.1% increase in veterans’ benefits. Wages and salaries were up 2.5%, with private and government wages up by pretty much the same percentage. Proprietors’ income was up 2.2% as non-farm income was up 3.6% while farm income was down 40.1%. Income on assets was up just 2.0%, driven largely by interest income.
Wages and salaries accounted for just under half of the total increase in personal income on a year-ago basis, most of which came from private industry wages. On a month-ago basis, wages and salaries rose by $30.9 billion, but that was more than offset by the $43.8 billion decline in income on assets.
The growth rate of personal tax payments slowed to 2.5% from a year ago, leaving disposable income up 2.6%. After factoring in inflation, real personal disposable income growth dipped from 1.4% to 1.2%, and real spending slowed from 3.0% to 2.7%.