US PCE for May 2026: prices outpace real spending, Fed hike risk up
U.S. consumers paid more in May, but higher prices drove most of the increase rather than people buying more. That has equity investors watching demand as they try to gauge whether earnings will hold up with inflation rising again. Commerce reported personal income climbed $181.6 billion, or 0.7%, in May. Disposable income was up $164.9 billion, and spending gained $156.1 billion, also a 0.7% rise. Real personal consumption expenditures, which strip out inflation, increased $43.8 billion, or 0.3%. Saving rate hit 3.0%. The PCE price index posted a 0.4% gain in May and 4.1% over the year. Core PCE, which excludes food and energy, was up 0.3% for the month and 3.4% on the year.