VTIP - U.S. May spending/income decline amid rising inflation

uschools/E+ via Getty Images As current U.S. government transfer payments slow down, real personal income and spending decline as inflation rises in May, according to the May Personal Income and Outlays report. Consumer spending, expressed as personal consumption expenditure, is unchanged M/M but it came in below +0.3% consensus and +0.9% in April, according to the Bureau of Economic Analysis. Spending patterns leaned to services in May with spending for services increasing $74.3B, while spending in goods fell by $71.5B, according to the report. The Core PCE Price Index increases 3.4% Y/Y which is the fastest pace since the early 1990s. The U.S. personal savings rate, at 12.4%, is still elevated from historical levels but has eased from 14.5% in April, which implies consumer spending will likely pick up. Gregory Daco, chief U.S. economist at Oxford Economics, says he expects consumer spending to grow ~9% this year, which would be the

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U.S. May spending/income decline amid rising inflation