US personal income, spending see increase last month
Date
6/30/2024 4:32:03 AM
(MENAFN) Recent figures released by the US Bureau of Economic Analysis indicate positive trends in both personal income and spending for Americans during May.
In May, personal income saw a robust increase of USD114.1 billion, marking a monthly growth rate of 0.5 percent. This exceeded market expectations, which had anticipated a 0.4 percent increase, and represented an acceleration from the 0.3 percent rise observed in April. The rise in personal income was primarily driven by increases in compensation, personal income receipts on assets, and government social benefits, as reported by the agency.
Disposable personal income, which factors in personal income minus personal current taxes, also saw a notable increase in May. It rose by USD94 billion, or 0.5 percent, compared to the previous month's 0.3 percent increase. This indicator reflects the income available to households after accounting for taxes.
Personal consumption expenditures (PCE), a key measure of personal spending, rose by USD47.8 billion, or 0.2 percent, in May compared to the previous month. This uptick, although slightly below market expectations of a 0.3 percent gain, showed a modest improvement from the 0.1 percent increase recorded in April. The increase in PCE was driven by a USD34.2 billion rise in spending on services and a USD13.6 billion increase in spending on goods.
Within services, significant contributors to the spending increase included categories such as health care, housing and utilities, and transportation services. These sectors played pivotal roles in driving overall consumer spending during the period.
Overall, the May data indicates resilient growth in personal income alongside steady consumer spending, underscoring continued economic recovery and consumer confidence in the US economy amidst evolving market conditions.
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