US personal income fell, spending rose slightly in May

ANKARA

Personal income in the US declined last month and personal spending rose slightly, according to Department of Commerce on Friday.

In May, personal income decreased $414.3 billion, or 2%, from the previous month, while personal spending increased $2.9 billion, less than 0.1%.

Market expectation for personal income was a decline of 2.5% in May, while it plummeted 13.1% in April. Market estimate for personal spending was an increase of 0.4% last month, while it rose 0.9% the previous month.

The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation indicator, increased 0.4% in May. Core PCE index, excluding food and energy, rose 0.5% from the previous month. Year-over-year, they were up 3.9% and 3.4%, respectively.

The Fed has repeatedly said in recent months it will allow inflation to climb slightly above its 2% target to revive American economy from the pandemic until raising interest rates.

The central bank, however, signaled last week it could make two rate hikes, by 0.25% each, in 2023 against rising inflation.

ANKARA

Personal income in the US declined last month and personal spending rose slightly, according to Department of Commerce on Friday.

In May, personal income decreased $414.3 billion, or 2%, from the previous month, while personal spending increased $2.9 billion, less than 0.1%.

The Fed has repeatedly said in recent months it will allow inflation to climb slightly above its 2% target to revive American economy from the pandemic until raising interest rates.

The central bank, however, signaled last week it could make two rate hikes, by 0.25% each, in 2023 against rising inflation.