Personal Income and Consumption Rose in May

Personal income increased 0.2%, $37.1 billion in May, according to the Bureau of Economic Analysis, down from a 0.5% gain in April. Personal consumption expenditures also increased, rising 0.4% or $53.5 billion.

Real disposable income – personal income less personal taxes – increased 0.1%, compared with a 0.2% increase in April.

The personal savings rate – personal savings as a percentage of personal income – was 5.3%, down from 5.4% in the previous month.

Wages and salaries increased $14.7 billion, compared to a $40.4 billion increase in April. The majority of the gain was due to an $11.8 billion increase in private sector wages and salaries. Government wages and salaries also increased, rising $2.9 billion.

The price index for PCE increased 0.2% in May, compared with a 0.3% April increase. Excluding food and energy, the index also increased by 0.2%.

Read the BEA release.

About Tim Nicholson

Tim Nicholson
Tim Nicholson is an economic research associate at ABA.
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