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US personal income rose 0.7% month-over-month in May 2026, beating market expectations of a 0.4% increase and rebounding from a flat reading in April. This was the strongest monthly gain since July 2025, driven primarily by a sharp rise in farm proprietors’ income, which increased by $59.6 billion following payments disbursed under the American Relief Act of 2025. During the month, the USDA issued a second round of Supplemental Disaster Relief Program payments to producers.
Proprietors’ income with inventory valuation and capital consumption adjustments increased by $84.6 billion, while employee compensation rose by $66.8 billion, including a $57.1 billion advance in wages and salaries. Within that, private-sector wages were up $48.7 billion, and government wages climbed $8.4 billion.
Disposable personal income also increased 0.7%, or $164.9 billion, reversing a 0.1% decline in April. In real terms, disposable personal income rose 0.3%, following a 0.5% decrease in the previous month.
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