Personal Income in May Quadruples Economists' Estimates

Tags: DIA
27 Jun 9:14pm
Read original blog entry

Consumer spending in the U.S. doubled in May, the Commerce Department reported this morning, attributing most of the rise to billions of dollars in government stimulus packages mailed last month.

Personal consumption expenditures rose 0.8% in May, compared to an upwardly revised 0.4% increase in April, marking the largest monthly gain since September 2005. Economists, on average, were predicting a 0.7% rise. Adjusting for the 0.4% rise in consumer prices, real spending rose 0.4%, marking the largest jump in 9 months.

Meanwhile, personal income jumped 1.9% higher in May, more than 4 times the 0.4% gain the Street had predicted. Real disposable incomes (post-tax and adjusted for inflation) increased 5.3% in May. Minus rebates and inflation, real disposable incomes were flat.


Copyright Schaeffer's Investment Research http://www.schaeffersresearch.com

Comments

Back to top

Post comment

Back to top

Post a comment

Please login to post a comment

About

SchaeffersResearch

Schaeffer’s Investment Research, founded by Bernie Schaeffer in 1981, is a research-driven provider of investment research and recommendations featuring a unique, time-tested analysis of investor expectations. Schaeffer's contrarian approach, called Expectational Analysis®, focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription publication and it's website, www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's.