US personal incomes and spending rise more quickly than expected in May

According to the Department of Commerce, personal incomes increased at a month-on-month clip of 0.5% last month, following an identical gain for April (consensus: 0.3%).

Personal spending meanwhile was ahead by 0.4%, just as expected by economists, but came on the back of a rise during the previous month that revisions showed was twice as big as originally estimated.

Revised data from Commerce revealed that personal spending jumped by 0.6% in April, instead of the initially estimated increase of 0.3%.

Meanwhile, the personal savings rate edged up by two tenths of a percentage point to 6.7%.

Inflationary pressures, as measured by the so-called price deflator for personal consumption expenditures, eased a tad, with the rate of gains slipping from April's upwardly revised reading of 1.6% to 1.5%.

The year-on-year rate of increase in headline PCE prices was originally reported at 1.5%.

At the core level on the other hand, PCE price gains were steady at 1.6%.