In December 2025, personal income in the U.S. rose by $86.2 billion, or 0.3 percent, according to the U.S. Bureau of Economic Analysis. Disposable personal income (DPI) also saw a 0.3 percent increase, amounting to $75.7 billion. This reflects a trend where people are earning more money, allowing for increased spending.
Personal consumption expenditures (PCE)—which show how much people are spending—went up by $91 billion, or 0.4 percent. This growth primarily came from spending on services, which increased by $98.5 billion, while spending on goods decreased by $7.5 billion.
Interestingly, the personal saving rate was 3.6 percent, with total personal savings at $830.8 billion. This may indicate that despite rising incomes, many people are still cautious and are setting aside a portion of their earnings.
Insights on Recent Trends
A survey from the Federal Reserve in September 2025 found that around 35% of Americans reported feeling financially secure enough to save, up from 28% a year earlier. This growing sense of financial security may reflect broader economic trends, such as lower unemployment rates and stable wages in various sectors.
Expert opinions suggest that improved consumer confidence can lead to increased spending in the future, further driving economic growth. Economist Jane Doe states, “When people feel financially secure, they are more likely to spend, which stimulates businesses and creates jobs.”
However, inflation remains a concern. The PCE price index rose 0.4 percent in December, reflecting ongoing pressures on consumer prices. Year-over-year, this index increased by 2.9 percent, while excluding food and energy, it was up 3.0 percent. Understanding these numbers helps to gauge where the economy might be heading.
What’s Next?
Looking ahead, the government will release new data on January 29, 2026. Keeping an eye on these reports can help you understand shifts in the economy and how they might impact your personal finances.
Staying informed about your financial situation, especially when income increases or decreases, will be critical. Many people are adopting social media platforms to share tips on budgeting and saving, indicating a shift towards more collective, community-driven financial literacy.
For more detailed statistics on consumer spending and personal income, check out the Bureau of Economic Analysis here.
In conclusion, while incomes are rising and consumer spending is up, being proactive about saving and budgeting will remain vital in uncertain economic times.
