Income and Expenditures Increases in May

Personal income increased $79 billion, or 0.5 percent, in May according to the Bureau of Economic Analysis, the same pace as the previous month. Personal consumption expenditures (PCE) increased $105.9 billion, or 0.9 percent, in May after increasing only 0.1 percent in April.

Disposable personal income—personal income less personal current taxes—increased $65.5 billion, or 0.5 percent, in May, after gaining 0.4 percent in April. Real disposable income increased 0.2 percent in May compared to a 0.4 percent increase in April.

The personal savings rate as a percentage of disposable income was 5.1 percent, down 3 basis points from April.

Wages and salaries increased $37.1 billion, compared with an increase of $21.6 billion in April. Goods-producing industries saw the most significant growth as payrolls increased 79 percent on the month to $33.7 billion. Manufacturing payrolls added 0.2 percent for a May total of $600 million.

The price index for PCE increased 0.3 percent in May compared with an increase of less than 0.1 percent in April. The PCE price index, excluding food and energy increased 0.1 percent in May, consistent with April.