Personal income and consumption in the US showed moderately positive improvement in May

Personal income and consumption in the US showed moderately positive improvement in May. For whatever reason, the BEA income and spending report doesn't get as much press as other economic releases, but it's one of the most important. Personal income and spending do a much better job of predicted GDP than just about any other indicators. In May's report, personal income increased 0.4% from the prior month, while personal consumption climbed 0.2%. Consumption was a little lower than expected and income growth met expectations. Perhaps more importantly, the year-over-year change in both disposable income and consumption expenditures looks healthy at a 3.7% increase. Even better, private-sector wages increased by over 4% from last year. Keep in mind, private-sector wages are the driving force behind wage growth. (VIEW LINK)