Personal income increased $181.6 billion (0.7 percent at a monthly rate) in May, according to estimates released today by the U.S. Bureau of Economic Analysis (BEA). Disposable personal income (DPI) —personal income less personal current taxes—increased $164.9 billion (0.7 percent), and personal consumption expenditures (PCE) increased $156.1 billion (0.7 percent).

Personal outlays —the sum of PCE, personal interest payments, and personal current transfer payments—increased $159.9 billion in May. Personal saving was $704.2 billion in May, and the personal saving rate —personal saving as a percentage of DPI—was 3.0 percent.

The increase in current-dollar personal income in May primarily reflected increases in farm proprietors’ income and compensation.

The $156.1 billion increase in current-dollar PCE in May reflected increases of $94.3 billion in spending on services and $61.8 billion in spending on goods.

Real PCE increased $43.8 billion ( 0.3 percent at a monthly rate) in May.

From the preceding month,…