US Personal Spending Disappoints in May

Personal consumption expenditure rose 0.2 percent in May of 2014, after being flat in April and below market expectations. In contrast, personal income gained 0.4 percent.
U.S. Bureau of Economic Analysis | Joana Taborda | joana.taborda@tradingeconomics.com 6/26/2014 1:47:39 PM
Personal income increased $58.8 billion, or 0.4 percent, and disposable personal income (DPI) increased $55.6 billion, or 0.4 percent, in May. Personal consumption expenditures (PCE) increased $18.3 billion, or 0.2 percent.

Real DPI increased 0.2 percent in May, the same increase as in April.  Real PCE decreased 0.1 percent in May, compared with a decrease of 0.2 percent in April.

Purchases of durable goods increased 1.0 percent, in contrast to a decrease of 0.9 percent. Purchases of motor vehicles and parts accounted for more than half of the increase in May, and more than accounted for the decrease in April. Purchases of nondurable goods decreased 0.3 percent in May, compared with a decrease of 0.1 percent in April.  Purchases of services decreased 0.2 percent, compared with a decrease of 0.1 percent.

The price index for PCE increased 0.2 percent in May, the same increase as in April.  The PCE price index, excluding food and energy, increased 0.2 percent in May, the same increase as in April.

Private wages and salaries increased $27.8 billion in May, compared with an increase of $17.9 billion in April. Goods-producing industries' payrolls increased $7.4 billion, in contrast to a decrease of $1.5 billion; manufacturing payrolls increased $5.0 billion, in contrast to a decrease of $2.8 billion.  Services-producing industries' payrolls increased $20.4 billion, compared with an increase of $19.3 billion.  Government wages and salaries increased $1.4 billion, compared with an increase of $1.2 billion.

US Personal Spending Disappoints in May