Personal income increased $108.1 billion, or 1.0 percent, and disposable personal income (DPI)increased $73.0 billion, or 0.8 percent, in January, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $51.9 billion, or 0.5 percent. In December,personal income increased $55.7 billion, or 0.5 percent, DPI increased $46.0 billion, or 0.5 percent, and PCE increased $69.4 billion, or 0.7 percent, based on revised estimates.
These are good numbers and probably partially explain the increase in spending we are seeing.
However, core PCE -- a measure of inflation -- increased .3% and core PCE incresed 2.3% year-over-year. These numbers add further fuel to the argument the Fed won't be lowering rates anytime soon.