Global| Jun 30 2005U.S. Personal Income Growth Eased in May
by:Tom Moeller
|in:Economy in Brief
Summary
May personal income rose just 0.2% following a downwardly revised 0.6% gain the prior month. Consensus expectations had been for a 0.3% increase. Wages & salaries rose a slim 0.1% (7.0% y/y) following the 0.7% pop in April. Wages in [...]
May personal income rose just 0.2% following a downwardly revised 0.6% gain the prior month. Consensus expectations had been for a 0.3% increase.
Wages & salaries rose a slim 0.1% (7.0% y/y) following the 0.7% pop in April. Wages in service producing industries rose 0.1% (8.3% y/y) after the 0.9% April gain but factory sector wages rose 0.3% (5.4% y/y) following a downwardly revised 0.4% April increase.
Disposable personal income rose 0.2% (5.5% y/y) following three months of 0.4% and 0.5% gain. When adjusted for price inflation take home pay rose 0.1% (3.2% y/y) for the second consecutive month.
Personal consumption was unchanged in May following a 0.6% increase in April due to the 4.5% m/m drop in light vehicle sales. Consensus expectations had been for a 0.1% rise. Spending on durables fell 1.8% (+3.7% y/y) and nondurables spending dipped 0.4% (+6.9% y/y) as gasoline prices fell. Spending on services rose 0.6% (5.6% y/y).
The PCE chain price index was unchanged with lower gas prices but less food & energy the 0.2% m/m increase was double the prior month's slim increase.
Lessons Learned from the Recent Business Cycle from Philadelphia Federal Reserve Bank President Santomero is available here.
| Disposition of Personal Income | May | April | Y/Y | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| Personal Income | 0.2% | 0.6% | 6.7% | 5.8% | 3.2% | 1.8% |
| Personal Consumption | 0.0% | 0.6% | 5.7% | 6.0% | 5.2% | 4.6% |
| Savings Rate | 0.6% | 0.5% | 1.0% | 1.3% | 1.4% | 2.0% |
| PCE Chain Price Index | 0.0% | 0.4% | 2.2% | 2.2% | 1.9% | 1.4% |
| Less food & energy | 0.2% | 0.1% | 1.6% | 1.5% | 1.3% | 1.8% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
More Economy in Brief
