US personal income surged 0.9% from the previous month to $25.345 trillion in January 2025, accelerating from a 0.4% increase in December and well surpassing market expectations of a 0.3% rise.
US PCE prices rise as expected
This marked the sharpest monthly gain in a year, driven by broad-based increases across multiple income categories.
The compensation of employees rose 0.4%, supported by solid wage growth (0.4%) and a 0.6% increase in wage supplements. Additionally, personal income receipts on assets jumped 1.1%, as a notable 1.7% increase in personal dividend income outpaced a more modest 0.4% rise in interest income, reflecting strong equity market performance during the period.
Other details
Other income components also saw significant gains. Rental income of persons, adjusted for capital consumption, climbed 1.4%, while proprietors' income, incorporating inventory valuation and capital consumption adjustments, increased 1.5%. These figures highlight the resilience of household earnings amid a shifting economic landscape.
