US Personal Income Rises More Than Expected in May

Key Facts

1U.S. personal income rose 0.7% month-over-month in May, beating market expectations of a 0.4% gain, driven by higher wages and salaries and farm proprietors' income.

As markets monitor the health of the US economy, May data showed a stronger-than-expected rise in personal income. According to reports, personal income climbed 0.7% month-over-month in May, beating the market consensus of 0.4%. The increase was fueled by higher wages and salaries and farm income from the American Relief Act of 2025.

This improvement follows a flat reading in April, indicating sustained labor market strength and income support. Consumer spending also perked up, bolstering second-quarter growth expectations. Notably, Canada's inflation rate reached 3.2% in May, per market data, highlighting ongoing global price pressures.

Investors are watching for Fed policy signals after this data, anticipating speeches from Fed officials and their impact on interest rate expectations. Attention will also turn to second-quarter GDP data and consumer confidence indicators to complete the economic recovery picture.