Personal spending in US for May comes in below forecasts
Personal incomes in the US continued to grow steadily last month, but spending came in lower than expected.
According to the Department of Commerce, personal incomes increased at a month-on-month pace of 0.5%, in line with economists' forecasts, while outlays were up by just 0.2% versus April (consensus: 0.4%).
Furthermore, estimates for personal consumption expenditures for the prior two months were revised lower alongside.
The rates of growth for personal spending in March and April were marked down by two and three tenths of a percentage point to 1.2% and 0.6%, respectively.
On the other hand, personal income growth for those same two months was revised up by two and one tenth of a percentage point to 0.6% and 0.5%, respectively.
And price pressures were a tad less than anticipated in May.
The headline PCE price deflator printed at up by 0.6% on the month and 6.3% year-on-year (Barclays Research: 6.4%).
At the core level, PCE prices were up 0.3% on the month and 4.7% (Barclays Research: 4.7%) higher in annual terms.
Personal savings a proportion of disposable personal incomes were running at 5.6% in May after 7.9% in April.