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Friday, June 28, 2024 Contact: Connie O’Connell, (301) 278-9003 Personal Income and Outlays, May 2024 Personal income increased $114.1 billion (0.5 percent at a monthly rate) in May. Disposable personal income (DPI)—personal income less personal current taxes—increased $94.0 billion (0.5 percent). Personal outlays—the sum of personal consumption expenditures (PCE), personal interest payments, and personal current transfer payments—increased $56.4 billion (0.3 percent) and consumer spending increased $47.8 billion (0.2 percent). Personal saving was $806.1 billion and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.9 percent in May. 5.0 0.8 4.0 0.6 3.0 0.4 2.0 0.2 1.0 0.0 0.0 Nov. Dec. 2023 DPI, % change from prior period Jan. Feb. Mar. Apr. Percent Percent change from prior period Disposable Personal Income, Outlays, and Saving 1.0 May 2024 Outlays, % change from prior period Personal saving as % of DPI U.S. Bureau of Economic Analysis Seasonally adjusted Personal income The increase in personal income in May primarily reflected increases in compensation, personal income receipts on assets, and government social benefits. • 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 $58.8 billion and goods-producing industries increased $14.9 billion. • Within personal income receipts on assets, both dividend and interest income increased. • Within government social benefits, Medicare and Medicaid led the increase. 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. Email alerts are also available. Estimates of June 2024 Personal Income and Outlays will be released on July 26, 2024. Consumer spending The $47.8 billion increase in consumer spending in May reflected an increase in spending for both services and goods. • Within services, the largest contributors to the increase were health care (led by hospitals), based on BLS CES data, housing and utilities (led by housing), and transportation services (led by air transportation), based on passenger volume data from the Transportation Security Administration. Within goods, the increase primarily reflected an increase in other nondurable goods (led by prescription drugs), based on private trade data, that was partly offset by a decrease in gasoline and other energy goods, based on Energy Information Administration data. Month-to-Month Change in Consumer Spending Consumer spending Goods Services 1.5 1.0 0.5 Percent • 0.0 -0.5 -1.0 -1.5 -2.0 Jan. Feb. Mar. Apr. May 2024 U.S. Bureau of Economic Analysis Seasonally adjusted Changes in Monthly Consumer Spending, May 2024 Consumer spending increased $47.8 billion Goods Services Health care 27.6 Other nondurable goods 14.2 Housing and utilities 9.7 Recreational goods and vehicles 6.5 Transportation services 4.6 Clothing and footwear 4.1 Other durable goods 1.0 Recreation services -0.2 Motor vehicles and parts -0.3 Furnishings and durable household equipment -0.5 Final expenditures of NPISHs -0.5 Financial services and insurance -0.7 Food and beverages -1.2 Other services -2.1 Food services and accommodations Gasoline and other energy goods U.S. Bureau of Economic Analysis -4.0 -10.1 Billions of dollars Seasonally adjusted annual rates Page 2 of 3 PCE price index From the preceding month, the PCE price index for May decreased less than 0.1 percent. Prices for goods decreased 0.4 percent, and prices for services increased 0.2 percent. Food prices increased 0.1 percent and energy prices decreased 2.1 percent. Excluding food and energy, the PCE price index increased 0.1 percent. For a comparison of PCE prices to BLS consumer price indexes, refer to 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 2.6 percent. Prices for goods decreased 0.1 percent and prices for services increased 3.9 percent. Food prices increased 1.2 percent and energy prices increased 4.8 percent. Excluding food and energy, the PCE price index increased 2.6 percent from one year ago. Percent Change in PCE Price Indexes from Month One Year Ago PCE 5.0 PCE excluding food and energy Percent 4.0 3.0 2.0 1.0 0.0 0.0 May Jun. Jul. Aug. Sep. 2023 U.S. Bureau of Economic Analysis Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 2024 Seasonally adjusted Real disposable personal income and consumer spending Real DPI increased 0.5 percent in May. Real consumer spending increased 0.3 percent, reflecting an increase in spending on goods of 0.6 percent and an increase in spending on services of 0.1 percent. Within goods, the largest contributor to the increase was recreational goods and vehicles (led by computer software and accessories). Within services, the largest contributors to the increase were transportation services (led by air transportation) and health care (led by outpatient services). Page 3 of 3
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