The Bureau of Economic Analysis (BEA) released the data from the Personal Income and Expenditure report corresponding to May 2022, in the indicating that personal income increased $113,400 million (0.5%).
According to the information, disposable personal income (DPI) increased $76,500 million (0.5%) and consumer spending staff (PCE) increased $30,700 million (0.2%).
The BEA notes that the increase in personal income in May mainly reflected increases in wages and owners’ income that were partially offset by a decrease in government social benefits.
Within compensation, the increase reflected increases in private and government wages and salaries. The decrease in government welfare benefits primarily reflected a decrease in “other” benefits that was partially offset by increases in Medicaid and Medicare.
Within “other” benefits, the decrease was mainly reflected in transfers to non-profit health care providers through the Provider Relief Fund.
The report indicates that the increase of $35,2022 million in the PCE in current dollars in May reflected an increase of $76,200 million in service expense, which was partially offset by a decrease of $43,500 million in spending on goods.
Within services, the BEA points out, increases in housing and public services (led by housing), “other” services (led by International travel) and medical care (led by hospitals) contributed the most.
Within goods, a decrease in spending on motor vehicles and parts (led by new motor vehicles) was partly offset by an increase in gasoline and other energy goods.
Personal expenses increased $38,300 million in May. Personal savings were $1. billion in the same period and the personal savings rate was 5.4%.
The BEA report indicates that the PCE price index for May increased 6.3% compared to the previous year, reflecting increases in both goods and services . Energy prices increased by 38.8%, while food prices increased by 01%. Excluding food and energy, the May PCE price index increased 4.7 percent from a year earlier.
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