Personal consumption in the US fell short of expectations in May

The US Department of Commerce released May personal income and consumption expenditure data.

Accordingly, personal incomes in the country increased by 0.4 percent in May compared to the previous month. Market expectations were for personal income to increase by 0.3 percent during this period. The increase in the personal income of Americans was 0.3 percent in April.

Personal consumption expenditures, on the other hand, increased by 0.1 percent month-on-month in May, less than expected.

Market expectations were for personal consumption expenditures to increase by 0.2 percent in this period. Personal consumption expenditures rose 0.6 percent in April.

The price index increased by 3.8 percent year-on-year

The personal consumption expenditures price index, on the other hand, rose 0.1 percent month on month and 3.8 percent year on year. The said data, which recorded the lowest increase since April 2021 on an annual basis, increased by 0.4 percent monthly and 4.3 percent annually in April.

The core personal consumption expenditures price index, which excludes food and energy items, which the US Federal Reserve (Fed) considers as inflation indicators, increased by 0.3 percent on a monthly basis and by 4.6 percent on an annual basis in the same period.

Market expectations were for the core personal consumption expenditures price index to increase by 0.3 percent monthly and 4.7 percent annually. The increase in the core personal consumption expenditures price index was 0.4 percent monthly and 4.7 percent annually in April.