Personal Small Business Corporate & Institutional About Us
After a weak May jobs report, the U.S. labor market rebounded in June, with job gains of 224,000. The private sector added 191,000 jobs, while government employment rose by 33,000.
Personal income rose a solid 0.5% in May, unadjusted for inflation, besting expectations for a 0.3% increase. Most of the increase came from higher interest income; labor market income was up 0.2% in May. Personal income rose 0.5% in April (unrevised). After-tax income also rose 0.5% in May. Adjusted for inflation and taxes, personal income was up 0.3% in May. Inflation-adjusted disposable income was up 2.3% in May from one year earlier.
Consumer spending rose 0.4% in May before inflation, following a 0.6% increase in April. There was a big jump in durable goods spending in May (up 1.7%), while nondurable goods spending fell slightly. Services spending rose 0.4%.
With spending growth slightly softer than income growth, the savings rate rose to 6.2% in May, from 6.1% in April. Households are not overextended; the savings rate is well above where it was heading into the Great Recession.
Inflation-adjusted spending rose 0.2% in May, and was up 2.7% from one year earlier. Consumers remain in good shape in mid-2019. With the economy adding jobs and a tight labor market boosting wages, household incomes are rising. This, in turn, is supporting commensurate gains in spending. Consumer spending accounts for about two-thirds of U.S. GDP.
The information contained in this site, is to the best of PNC Bank's knowledge, correct and accurate, but PNC Bank does not represent, warrant or guarantee its accuracy. Any downloading of material contained in this site or of any site linked to this site may be a violation of federal trademark and copyright laws.
We have tools to help you bank when and where you want.Mobile Apps Directory »
Be part of our inclusive culture that strives for excellence and rewards talent.Visit PNC Careers »
The PNC Financial Services Group, Inc. All rights reserved.