In May 2026, according to the US Bureau of Economic Analysis (BEA), personal income and consumer spending both rose modestly, indicating that household finances improved after a weaker April. Personal income increased, supported by gains in wages and other income sources, while disposable income also moved higher, giving consumers slightly more spending power.
Personal consumption expenditures (PCE) rose again in May, showing that consumer demand remained resilient despite inflation pressures. Spending continued to be driven mainly by services and essential goods, even as higher prices limited real purchasing gains.
The report points to a stable but slowing consumer sector, with income growth recovering and spending holding up, but real purchasing power still constrained by inflation and uneven household financial conditions.
