Personal Income increased 0.5% in May, Spending increased 0.9%, by Bill McBride: The BEA released the Personal Income and Outlays report for May:Personal income increased $79.0 billion, or 0.5 percent ... in May... Personal consumption expenditures (PCE) increased $105.9 billion, or 0.9 percent.
Real PCE -- PCE adjusted to remove price changes -- increased 0.6 percent in May, compared with an increase of less than 0.1 percent in April. ... The price index for PCE increased 0.3 percent in May, compared with an increase of less than 0.1 percent in April. The PCE price index, excluding food and energy, increased 0.1 percent in May, the same increase as in April.
The May price index for PCE increased 0.2 percent from May a year ago. The May PCE price index, excluding food and energy, increased 1.2 percent from May a year ago.
...The increase in personal income was higher than expected. And the increase in PCE was above the 0.7% increase consensus. A strong report. ...This suggests a rebound in PCE in Q2, and decent Q2 GDP growth.