Americans' personal income growth, spending both up in May from previous month

By Ovunc Kutlu

ISTANBUL (AA) - Americans' personal income growth and personal spending both rose May from the previous month, according to official figures released Friday.

Personal income climbed $114.1 billion, or 0.5%, at a monthly rate in May, according to the US Bureau of Economic Analysis.

The figure came in higher than market estimates of 0.4% and gained pace from a 0.3% monthly increase seen in April.

"The increase in current-dollar personal income in May primarily reflected increases in compensation, personal income receipts on assets, and government social benefits," the agency said in a statement.

Disposable personal income, which is personal income minus personal current taxes, rose $94 billion in May or 0.5%, from the previous month, when it was up 0.3%.

Personal spending, meanwhile, also referred to as personal consumption expenditures (PCE), gained $47.8 billion, or 0.2%, in May from the month before.

That figure showed a slight tick up from a 0.1% monthly gain in April, but came in slightly lower than the market expectations of a 0.3% gain.

"The $47.8 billion increase in current-dollar PCE in May reflected an increase of $34.2 billion in spending for services and a $13.6 billion increase in spending for goods," said the agency.

Within services, the largest contributors to the increase were health care, housing and utilities, and transportation services.