US Personal Spending Rises 0.4% in May

Personal spending in the United States rose 0.4 percent from a month earlier in May 2019, following an upwardly revised 0.6 percent growth in April and matching market expectations. Consumption of durables and services drove the increase.
BEA | Joana Ferreira | 6/28/2019 12:43:53 PM
Personal consumption expenditures (PCE) rose $59.7 billion, or 0.4 percent, in May. Real PCE grew $32.9 billion, or 0.2 percent, mainly reflected an increase of $18.5 billion in spending for goods and a $15.8 billion increase in spending for services. Within goods, new motor vehicles was the leading contributor to the increase. Within services, the largest contributor to the increase was spending for food services and accommodations.

Personal outlays increased $62.1 billion in May. Personal saving was $985.4 billion in May and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.1 percent.

Personal income went up $88.6 billion, or 0.5 percent, boosted by increases in personal interest income, wages and salaries, and government social benefits to persons.

Disposable personal income (DPI) increased $72.6 billion (0.5 percent). Real DPI increased 0.3 percent in May.

The personal consumption expenditure (PCE) price index in the United States rose 0.2 percent from a month earlier in May, easing from a 0.3 percent gain in April. Prices for services advanced 0.2 percent, slower than a 0.4 percent in the previous month; and cost of goods increased 0.1 percent, after rising 0.2 percent in April, of which nondurable (0.1 percent compared to 0.5 percent) while durable (0.1 percent compared to -0.4 percent). Year-on-year, the PCE price index went up 1.5 percent, below an upwardly revised 1.6 percent in April and the core index advanced 1.6 percent, the same as in the prior month and matching market expectations.

US Personal Spending Rises 0.4% in May