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.