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Money Matters: A Look at May 2025's Income and Spending

USAFri Jun 27 2025

Income and Spending

  • Income Drop: $109.6 billion (0.4% decrease from April)
  • Disposable Income: $125.0 billion (0.6% decrease)
  • Spending on Goods: $29.3 billion decrease
  • Spending on Services: Slight increase

Factors Influencing Income

  • Social Benefits: Decreased
  • Farm Income: Decreased
  • Wages: Increased

Savings

  • Total Savings: $1.01 trillion
  • Savings Rate: 4.5%

Price Changes

  • PCE Price Index: 0.1% increase from April
  • Excluding Food and Energy: 0.2% increase
  • Year-over-Year (May 2024 to May 2025):
  • Overall: 2.3% increase
  • Excluding Food and Energy: 2.7% increase

Summary

  • Income and spending have decreased.
  • Prices are rising, but not rapidly.
  • Savings remain significant.
  • Increased spending on services is notable.
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questions

    Did the decrease in government social benefits mean that the government decided to take a 'me-time' break from giving out benefits?
    What are the primary reasons for the decrease in spending on goods and the increase in spending on services in May 2025?
    How might the decrease in spending on goods and the increase in spending on services impact different sectors of the economy?

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