U.S. personal income rises 0.2% in May
The report said personal income edged up by 0.2 percent in May after rising by an upwardly revised 0.5 percent in April.
Economists had expected income to rise by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.
Disposable personal income, or personal income less personal current taxes, also crept up by 0.2 percent in May following a 0.5 percent advance in April.
Meanwhile, the Commerce Department also said personal spending climbed by 0.4 percent in May after spiking by an upwardly revised 1.1 percent in April.
Spending had been expected to increase by 0.4 percent compared to the 1.0 percent jump originally reported for the previous month.
Real spending, which is adjusted to remove price changes, rose by 0.3 percent in May following a 0.8 percent increase in April.
Steve Murphy, U.S. economist at Capital Economics, said increases in real spending in April and May imply "that even if spending was unchanged in June, second-quarter real consumption growth will be as strong as at 4% annualized." ■