Personal income rose more than $225 billion in May, which led to a personal expenditure increase of $77 billion in May over April, as the effects of the federal Economic Stimulus Act began to be felt, according to a new report from the Bureau of Economic Analysis.
Personal income rose 1.9 percent in May compared to April, while personal expenditures rose 0.8 percent. The rise in personal income in May followed two straight months of meager 0.3 percent increases in the measurement.
Disposable personal income, considered a prime indicator of consumer spending power, rose $600.3 billion, or 5.7 percent, in May.