Wages and salaries rose 0.4 percent in May, extending a run of solid monthly gains and continuing to outpace inflation, according to Commerce Department data released Friday. With core consumer prices rising just 0.2 percent last month, the latest wage
Americans’ personal income in the first four months of 2025 is “almost triple the expectations,” making for a “great” start of the year, CNBC’s Rick Santelli exclaimed on the air, urging viewers to “give credit” to the Trump administration.
U.S. personal income and consumer spending both rose in February, suggesting that the economy remains resilient despite surveys showing gloomy consumer confidence.
Spending and prices are rising faster than incomes.
Inflation-adjusted spending and income fell in May, raising concern that the post-pandemic economic recovery may have already run out of steam.
Real personal income has fallen in 7 out of the last 8 months.
Personal consumption expenditures fell one percent, a deeper drop than the 0.7 percent forecast by economists.
Personal income rose 10.0 percent in January and consumer spending rose 2.4 percent, the Department of Commerce said Friday.
Consumer spending and private sector wages rose even as income declined as government support ran dry.
Spending on goods is up by 15.5 percent compared with pre-pandemic levels.
Government payments boosted income in April but Americans shut in their homes spent nearly $2 trillion less than they had a month earlier.
The jump in incomes and consumer spending undermines the narrative of an ailing economy that Democrat presidential hopefuls are pushing.
Personal income gains were surprisingly strong in October.
