U.S. personal incomes grew by slightly less than expected in May but the slower than expected growth did not bring down consumer spending levels.
According to figures released Friday by the Commerce Department, U.S. personal income increased by $25.4 billion or 0.2 percent for May, with disposable incomes increasing by the same 0.2 percent margin.
Consumer spending, known more formally as personal consumption expenditures, decreased by $4.7 billion for the month, though, because that represents a decrease of less than 0.1 percent, Commerce Department figures record it as a 0.0 percent change.
Most economists had expected to see personal incomes rise slightly faster, forecasting a 0.3 percent increase, though the figures released for May matched the 0.2 percent growth in incomes recorded for April.
And while consumer spending held relatively level from April to May, new revisions to April consumer spending figures showed a drop to a 0.1 percent increase from the 0.3 percent increase initially reported.
by RTT Staff Writer
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