Income and Spending
Personal income saw a notable increase of $114.1 billion (0.5%) in May, while disposable personal income (DPI) rose by $94.0 billion (0.5%). When adjusted for inflation, real DPI also increased by 0.5%, indicating a genuine improvement in consumers’ purchasing power. In terms of spending, goods expenditures increased by $13.6 billion, with notable growth in nondurable goods like prescription drugs, offset partially by a decrease in gasoline and energy goods spending. Services spending rose by $34.2 billion, driven primarily by increases in health care, housing and utilities, and transportation services.
Consumer Actual vs. Estimated
While the report doesn’t provide explicit estimates for comparison, the accompanying news article suggests that the actual figures largely met economists’ expectations. The Core PCE year-over-year increase of 2.6% and the monthly increase of…
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