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Friday, June 30, 2023 Contact: Connie O’Connell, (301) 278-9003 Personal Income and Outlays, May 2023 Personal income increased $91.2 billion (0.4 percent at a monthly rate) in May. Disposable personal income (DPI)—personal income less personal current taxes— increased $86.7 billion (0.4 percent). Personal outlays—the sum of personal consumption expenditures, personal interest payments, and personal current transfer payments—increased $22.7 billion (0.1 percent) and consumer spending increased $18.9 billion (0.1 percent). Personal saving was $910.3 billion and the personal saving rate—personal saving as a percentage of disposable personal income—was 4.6 percent in May. Disposable Personal Income, Outlays, and Saving 5.5 4.5 Percent 3.5 Disposable personal income, % change from prior period Outlays, % change from prior period 2.5 Personal saving as a % of DPI 1.5 0.5 -0.5 Nov. Dec. 2022 U.S. Bureau of Economic Analysis Jan. Feb. Mar. Apr. May 2023 Seasonally adjusted Personal income In May, personal income increased, primarily reflecting increases in compensation, personal current transfer receipts, and personal income receipts on assets. • Within compensation, the increase was led by private wages and salaries, based on data from the Bureau of Labor Statistics (BLS) Current Employment Statistics (CES). Services-producing industries increased $42.6 billion and goods-producing industries increased $10.6 billion. • The increase in personal current transfer receipts was led by an increase in Medicaid. • The increase in personal income receipts on assets was led by personal interest income. BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and regional economic data—are available at www.bea.gov. E-mail alerts are also available. Estimates of June 2023 Personal Income and Outlays will be released on July 28, 2023. Consumer spending The $18.9 billion increase in consumer spending in May reflected an increase in spending for services that was partly offset by a decrease in spending for goods. Month-to-Month Change in Consumer Spending Consumer spending Goods Services 3.5 3.0 2.5 2.0 Percent • Within services, the largest contributors to the increase were health care (led by outpatient services), primarily reflecting BLS CES and price data; “other” services (led by international travel), based on international travelers data from the National Travel and Tourism Office; and transportation services (led by air transportation), based on Transportation Security Administration data on number of travelers. 1.5 1.0 0.5 0.0 0.0 -0.5 -1.0 -1.5 Jan. Feb. Mar. Apr. May 2023 U.S. Bureau of Economic Analysis Seasonally adjusted • Within goods, the largest contributors to the decrease were motor vehicles and parts (led by new light trucks), based on unit sales data from Wards Intelligence, and gasoline and other energy goods (led by motor vehicle fuels, lubricants, and fluids), based on Energy Information Administration and BLS data. Changes in Monthly Consumer Spending, May 2023 Consumer spending increased $18.9 billion Goods Services Health care 10.6 Other services 9.4 Transportation services 9.3 Housing and utilities 7.8 Financial services and insurance 7.1 Other nondurable goods 7.0 Food services and accommodations 6.6 Final expenditures of NPISHs 5.1 Food and beverages 3.6 Furnishings and durable household equipment 2.0 Recreational goods and vehicles 1.3 Clothing and footwear 0.6 Other durable goods -0.9 Recreation services -3.8 Motor vehicles and parts -23.3 Gasoline and other energy goods -23.4 U.S. Bureau of Economic Analysis Billions of dollars Seasonally adjusted annual rates Page 2 of 3 PCE price index From the preceding month, the personal consumption expenditures (PCE) price index for May increased 0.1 percent. Food prices increased 0.1 percent and energy prices decreased 3.9 percent. Excluding food and energy, the PCE price index increased 0.3 percent. For a comparison of PCE prices to BLS consumer price indexes, refer to NIPA Table 9.1U. Reconciliation of Percent Change in the CPI with Percent Change in the PCE Price Index. From the same month one year ago, the PCE price index for May increased 3.8 percent. Prices for goods increased 1.1 percent and prices for services increased 5.3 percent. Food prices increased 5.8 percent and energy prices decreased 13.4 percent. Excluding food and energy, the PCE price index increased 4.6 percent from one year ago. Percent Change in PCE Price Indexes from Month One Year Ago PCE 8.0 PCE excluding food and energy 7.0 Percent 6.0 5.0 4.0 3.0 0.0 May Jun. Jul. Aug. Sep. 2022 U.S. Bureau of Economic Analysis Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 2023 Seasonally adjusted Real disposable personal income and consumer spending Real DPI increased 0.3 percent in May. Real consumer spending decreased less than 0.1 percent, reflecting a decrease in spending on goods of 0.4 percent that was partly offset by an increase in spending on services of 0.2 percent. Within goods, the largest contributor to the decrease was spending for motor vehicles and parts (led by new light trucks). Within services, the increase was led by spending for “other” services (led by international travel) and transportation services (led by air transportation). Page 3 of 3