5 days ago
- Business
- Wall Street Journal
Personal Income Data Skewed by Social Security ‘Catch-Up' Payments
A drop in personal income in May data released Friday is largely attributable to an anomaly in Social Security payments, according to Troy Ludtka, senior U.S. economist at SMBC Nikko Securities Americas.
Personal income decreased 0.4% from the prior month in May, according to estimates released today by the U.S. Bureau of Economic Analysis. While this was a miss compared with many analysts' estimates of a 0.3% increase, the data isn't concerning to Ludtka, he said in a note.
Federal policy changes raised benefits for some government retirees, and 'catch-up payments" boosted April's income data. Now, May's data shows a reversal, with Social Security payments falling 7.3% in May from a month earlier.