News Release
Personal Income and Outlays, May 2025
Personal income decreased $109.6 billion (0.4 percent at a monthly rate) in May, according to estimates released today by the U.S. Bureau of Economic Analysis. Disposable personal income (DPI)—personal income less personal current taxes—decreased $125.0 billion (0.6 percent) and personal consumption expenditures (PCE) decreased $29.3 billion (0.1 percent).
Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—decreased $27.6 billion in May. Personal saving was $1.01 trillion in May and the personal saving rate—personal saving as a percentage of disposable personal income—was 4.5 percent.
The decrease in current-dollar personal income in May primarily reflected decreases in government social benefits to persons and in farm proprietors' income that were partly offset by an increase in compensation.
The $29.3 billion decrease in current-dollar PCE in May reflected a decrease of $49.2 billion in spending on goods that was partly offset by an increase of $19.9 billion in spending for services.
From the preceding month, the PCE price index for May increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent.
From the same month one year ago, the PCE price index for May increased 2.3 percent. Excluding food and energy, the PCE price index increased 2.7 percent from one year ago.
| Personal Income and Related Measures |
||||
|---|---|---|---|---|
| Current-dollar personal income | -0.4 | |||
| Current-dollar disposable personal income | -0.6 | |||
| Real disposable personal income | -0.7 | |||
| Current-dollar personal consumption expenditures (PCE) | -0.1 | |||
| Real PCE | -0.3 | |||
| PCE price index | 0.1 | |||
| PCE price index, excluding food and energy | 0.2 | |||
BEA will begin releasing results from the 2025 annual update of the National Economic Accounts, which include the National Income and Product Accounts as well as the Industry Economic Accounts, on September 25, 2025. The update will present revised statistics for GDP, GDP by Industry, and GDI. For details, refer to Information on 2025 Annual Updates to the National, Industry, and State and Local Economic Accounts.
Next release: July 31, 2025, at 8:30 a.m. EDT
Personal Income and Outlays, June 2025
Technical Notes
Changes in Personal Income and Outlays for May
The decrease in personal income in May reflected decreases in government social benefits to persons and farm proprietors' income that were partly offset by an increase in compensation.
- The decrease in government social benefits to persons was led by Social Security payments, reflecting a decrease in payments associated with the Social Security Fairness Act.
- The decrease in farm proprietors' income primarily reflected the pattern of payments from the Emergency Commodity Assistance Program as part of the American Relief Act.
- The increase in compensation was led by private wages and salaries, based on data from the Bureau of Labor Statistics (BLS) Current Employment Statistics (CES). Wages and salaries in services-producing industries increased $35.9 billion. Wages and salaries in goods‑producing industries increased $7.5 billion.
Revisions to Personal Income
Estimates have been updated for January through April, reflecting updated BLS CES data. The revision to Medicaid benefits for April reflects revised information from the Centers for Medicare & Medicaid Services and new Monthly Treasury Statement data.