US Personal Consumption Rises The Least In 3 Months

Personal spending in the US edged up 0.1 percent month-over-month in May of 2017, down from a 0.4 percent rise in April and in line with market expectations. It is the smallest gain in three months as spending on durables and nondurables declined. On the other hand, personal income rose 0.4 percent, higher than 0.3 percent in April and above expectations of 0.3 percent. The savings rate increased to 5.5 percent from 5.1 percent.

Consumption rose by USD 7.3 billion, due to a 0.3 percent gain in spending on services (0.3 percent in April). In contrast, spending fell for durables (-0.3 percent from 1 percent) and nondurables (-0.5 percent from 0.5 percent). 

Personal income increased 0.4 percent or USD 67.1 billion. It primarily reflected increases in personal dividend income, compensation of employees, and nonfarm proprietors’ income.

Disposable personal income (DPI) went up 0.5 percent or USD 71.7 billion. Real DPI increased 0.6 percent and real PCE rose 0.1 percent.

The PCE price index went down 0.1 percent after a 0.2 percent rise in April. Excluding food and energy, the PCE price index edged up 0.1 percent, the same as in the previous month.

US Personal Consumption Rises The Least In 3 Months

BEA | Joana Taborda |
6/30/2017 12:50:33 PM