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People have more disposable income so that means their spending can help stimulate a recovery effort. Personal income increased $58.2 billion, or 0.5 percent, and disposable personal income (DPI) increased $121.8 billion, or 1.1 percent, in April. Personal consumption expenditures (PCE) decreased $5.4 billion, or 0.1 percent. In March, personal income decreased $25.9 billion, or 0.2 percent, DPI increased $8.2 billion, or 0.1 percent, and PCE decreased $33.0 billion, or 0.3 percent, based on revised estimates.
The pattern of changes in income reflect, in part, the pattern of reduced personal current taxes and increased government social benefit payments associated with the American Recovery and Reinvestment Act of 2009. Real disposable income increased 1.1 percent in April, compared with an increase of 0.1 percent in March. Real PCE decreased 0.1 percent, compared with a decrease of 0.3 percent. – Courtesy of Bureau of Economic Analysis
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