FX.co ★ US Personal Income Posts Surprise Decline

In May 2025, US personal income experienced a 0.4% decline compared to the previous month, reaching a total of $25.698 trillion. This downturn comes after a revised increase of 0.7% noted in April and contrasts with market expectations of a 0.3% increase. The decrease marks the first drop since September 2021, largely driven by a 2.2% reduction in personal current transfer receipts and a 2.3% decrease in proprietors' income, adjusted for inventory valuation and capital consumption. In May, income from personal assets remained unchanged, as a 0.2% rise in interest income was negated by a 0.3% fall in dividend income. However, employee compensation saw a 0.4% increase, maintaining the same growth rate as in April, supported by a 0.4% rise in wages and a 0.5% increase in supplements to wages. Conversely, disposable personal income saw a 0.6% decrease, following a 0.8% increase in April.