US personal income rose 0.4 percent in May as expected

Istanbul, June 29 (DHA) – US personal income rose by 0.4 percent in May in line with expectations, after gaining 0.2 percent in the prior month.

Personal income increased $60.0 billion (0.4 percent) in May according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased 63.2 billion dollars (0.4 percent) and personal consumption expenditures (PCE) increased 27.8 billion dollars (0.2 percent).

Real DPI increased 0.2 percent in May and Real PCE decreased less than 0.1 percent. The PCE price index increased 0.2 percent.

Excluding food and energy, the PCE price index increased 0.2 percent.

The increase in personal income in May primarily reflected increases in wages and salaries, personal dividend income, and nonfarm proprietors’ income.

The 1.4 billion dollars decrease in real PCE in May reflected a decrease in spending for services that was partially offset by an increase in spending for goods.

Within goods, recreational goods and vehicles was the leading contributor to the increase. Within services, the largest contributor to the decrease was spending for household utilities.

Personal outlays increased 29.2 billion dollars in May. Personal saving was 482.0 billion dollars in May and the personal saving rate, personal saving as a percentage of disposable personal income, was 3.2 percent.

Estimates have been revised for January through April. The percent change from the preceding month for current-dollar personal income, and for current-dollar and chained (2009) dollar DPI and PCE -- revised and as published in last month\'s release -- are shown below.