Personal Income and Outlays, May 2021

Historical release narrative reproduced from the official public-domain U.S. Bureau of Economic Analysis source. Statistical tables, charts, standard technical appendices and administrative material are omitted; formatting is adapted for reading. Figures retain the release's original vintage and may have been revised. Consult the linked source for the complete release and current data.

Personal income decreased $414.3 billion (2.0 percent) in May according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) decreased $436.3 billion (2.3 percent) and personal consumption expenditures (PCE) increased $2.9 billion (less than 0.1 percent).

Real DPI decreased 2.8 percent in May and Real PCE decreased 0.4 percent; goods decreased 2.0 percent and services increased 0.4 percent (tables 5 and 7). The PCE price index increased 0.4 percent. Excluding food and energy, the PCE price index increased 0.5 percent (table 9).

The decrease in personal income in May primarily reflected a decrease in government social benefits (table 3). Within government social benefits, "other" social benefits decreased as economic impact payments made to individuals from the American Rescue Plan Act of 2021 continued, but at a lower level than in April. Unemployment insurance also decreased, led by decreases in payments from the Pandemic Unemployment Compensation program.

The $2.9 billion increase in current dollar PCE in May reflected an increase of $74.3 billion in spending for services that was mostly offset by a $71.5 billion decrease in spending for goods (table 3). Within services, increases were widespread, led by spending for recreation services, food services and accommodations, as well as housing and utilities. A decrease in spending on motor vehicles and parts was the leading contributor to the decrease in goods. Detailed information on monthly PCE spending can be found on Table 2.3.5U.

Personal outlays increased $5.5 billion in May (table 3). Personal saving was $2.29 trillion in May and the personal saving rate—personal saving as a percentage of disposable personal income—was 12.4 percent (table 1).

The PCE price index for May increased 3.9 percent from one year ago, reflecting increases in both goods and services (table 11). Energy prices increased 27.4 percent while food prices increased 0.4 percent. Excluding food and energy, the PCE price index for May increased 3.4 percent from one year ago.

Updates to Personal Income and Outlays

Estimates have been updated for January through April. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2012) dollar DPI and PCE, are shown below.