Personal Income and Outlays, May 2023

Personal income increased $91.2 billion (0.4 percent at a monthly rate) in May, according to estimates released today by the Bureau of Economic Analysis (table 3 and table 5). Disposable personal income (DPI), personal income less personal current taxes, increased $86.7 billion (0.4 percent) and personal consumption expenditures (PCE) increased $18.9 billion (0.1 percent).

The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.3 percent (table 9). Real DPI increased 0.3 percent in May and real PCE decreased by less than 0.1 percent; goods decreased 0.4 percent and services increased 0.2 percent (tables 5 and 7).

The increase in current-dollar personal income in May primarily reflected increases in compensation, personal current transfer receipts, and personal income receipts on assets (table 3). The increase in compensation was led by private wages and salaries. The increase in transfer receipts was led by Medicaid payments. The increase in personal income receipts on assets was led by personal interest income.

The $18.9 billion increase in current-dollar PCE in May reflected an increase of $52.0 billion in spending for services that was partly offset by a $33.1 billion decrease in spending for goods (table 3). Within services, the leading contributors to the increase were health care (led by outpatient services), “other” services (led by international travel), and transportation services (led by air transportation). Within goods, spending on motor vehicles and parts (led by new light trucks) and gasoline and other energy goods were the largest contributors to the decrease. Detailed information on monthly PCE spending can be found on Table 2.4.5U.

Personal outlays, the sum of PCE, personal interest payments, and personal current transfer payments, increased $22.7 billion in May (table 3). Personal saving was $910.3 billion in May and the personal saving rate—personal saving as a percentage of disposable personal income—was 4.6 percent (table 1).

Prices

From the preceding month, the PCE price index for May increased 0.1 percent (table 9). Prices for goods decreased 0.1 percent and prices for services increased 0.3 percent. Food prices increased 0.1 percent and energy prices decreased 3.9 percent. Excluding food and energy, the PCE price index increased 0.3 percent. Detailed monthly PCE price indexes can be found on Table 2.4.4U.

From the same month one year ago, the PCE price index for May increased 3.8 percent (table 11). Prices for goods increased 1.1 percent and prices for services increased 5.3 percent. Food prices increased 5.8 percent and energy prices decreased 13.4 percent. Excluding food and energy, the PCE price index increased 4.6 percent from one year ago.

Real PCE

The decrease of less than 0.1 percent in real PCE in May reflected a decrease of 0.4 percent in spending on goods that was partly offset by an increase of 0.2 percent in spending on services (table 7). Within goods, the largest contributor to the decrease was spending on new motor vehicles and parts (led by new light trucks). Within services, the largest contributors to the increase were “other” services (led by international travel) and spending on transportation services (led by public transportation). Detailed information on monthly real PCE spending can be found on Table 2.4.6U.

Updates to Personal Income and Outlays

Estimates have been updated for January through April. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2012) dollar DPI and PCE, are provided below for March and April.

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Next release: July 28, 2023, at 8:30 a.m. EDT
Personal Income and Outlays, June 2023