Updated: 25-Jun-26 10:03 ET
Highlights
- Personal income increased 0.7% month-over-month in May (Briefing.com consensus: 0.3%) after being unchanged in April.
- Personal spending also rose 0.7% month-over-month (Briefing.com consensus 0.3%) following a downwardly revised 0.4% increase (from 0.5%) in April.
- The PCE Price Index was up 0.4%, as expected, and up 4.1% year-over-year versus 3.8% in April.
- The core PCE Price index, which excludes food and energy, increased 0.3%, also as expected, and was up 3.4% year-over-year versus 3.3% in April.
- The PCE Price Index for Goods was up 0.4% in May after increasing 0.7% in April. The index was up 4.8% year-over-year in May versus 4.4% in April.
- The PCE Price Index for Services was up 0.5% in May after increasing 0.3% in April. The index was up 3.8% year-over-year versus 3.5% in April.
- Wages and salaries increased 0.4% month-over-month in May after increasing 0.3% in April.
- Real disposable income increased 0.3% month-over-month in May after declining 0.5% in April.
- Real personal spending was up 0.3% month-over-month after being flat in April.
- The personal savings rate, as a percentage of disposable personal income, held steady at 3.0%.
- The key takeaway from the report is that, first, there weren't any headline shocks for the PCE price indexes. They were in line with expectations, allowing participants to assume that next month's readings will look better given the sharp decline in oil prices. Secondly, real PCE was up 0.3% month-over-month, demonstrating that spending was driven by increased demand and not just higher prices. This will be a nice input for Q2 GDP forecasts.
| Category | MAY | APR | MAR | FEB | DEC |
| Personal Income | |||||
| Total Income | 0.7% | 0.0% | 0.5% | 0.0% | 0.5% |
| Wage and Salary | 0.4% | 0.3% | 0.4% | 0.1% | 0.5% |
| Disposable Income | 0.7% | -0.1% | 0.5% | -0.1% | 1.0% |
| Savings Rate | 3.0% | 3.0% | 3.5% | 3.8% | 4.4% |
| Personal Consumption | |||||
| Total (Nominal) | 0.7% | 0.4% | 0.9% | 0.6% | 0.2% |
| Total (Real, Chain $) | 0.3% | 0.0% | 0.3% | 0.2% | -0.2% |
| Core PCE Deflator | |||||
| Month/Month | 0.3% | 0.3% | 0.3% | 0.4% | 0.4% |
| Year/Year | 3.4% | 3.3% | 3.3% | 3.0% | 3.1% |
