Consumption growth slowed for durable (0.3 percent from 2.6 percent in April) and non-durable goods (0.6 percent from 1.7 percent in April) and services (0.4 percent from 0.7 percent in April).
Personal income increased 0.2 percent or $37.1 billion, slowing from an upwardly revised 0.5 percent gain in April and lower than market expectations of 0.3 percent. Disposable personal income increased $33.9 billion, or 0.2 percent (0.5 percent in April).
Wages and salaries rose $14.7 billion, compared with an increase of $40.4 billion in April. Private wages and salaries went up $11.8 billion, compared with an increase of $38.7 billion. In contrast, government ones increased $2.9 billion, compared with an increase of $1.6 billion. Supplements to wages and salaries grew $4.6 billion in May, compared with an increase of $6.0 billion in April.
The personal consumption expenditure price index rose 0.2 percent on the month and 0.9 percent on the year (0.3 percent and 1.1 percent respectively in April). Core PCE inflation was steady at a monthly rate of 0.2 percent and an annual of 1.6 percent.