These Personal Income and Outlays data points produced by the Bureau of Economic Analysis track personal income and monthly spending. They help gauge the strength of the consumer sector in the United States.
Personal income is the dollar value of income from all sources by individuals in the U.S.
Personal outlays is the dollar value of purchases of durable and non-durable goods and services by consumers in the U.S.
As income and spending increase, it is thought that the equity markets should react positively. This is because of an assumed resulting increase in corporate profits. This could lead to wage and product inflation, though, which would have a negative effect on the bond markets.
Disposable Personal Income (DPI) measures income after taxes and benefits, adjusted for the effects of inflation.
The Bureau of Economic Analysis reports this month’s numbers:
Personal income increased $25.4 billion, or 0.2 percent, and disposable personal income (DPI) increased $18.5 billion, or 0.2 percent, in May, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $4.7 billion, or less than 0.1 percent. In April, personal income increased $29.4 billion, or 0.2 percent, DPI increased $19.5 billion, or 0.2 percent, and PCE increased $16.2 billion, or 0.1 percent, based on revised estimates.
Real disposable income increased 0.3 percent in May, compared with an increase of 0.1 percent in April. Real PCE increased 0.1 percent in May, the same increase as in April.