WASHINGTON — The U.S. May personal income report raises the risk that 2Q consumption will post an outright decline — it shows a deadly combination of more savings and higher core prices that will knock buying lower in the gross domestic product accounts.
May personal income gained 0.3%, personal consumption expenditures were flat — its worst showing since a 0.6% decline in September 2009 — and PCE core prices rose 0.3% for a 1.2% gain over the year. The last time core prices were so high was October 2009, matching the 0.3% rise. Spending was flat.
