The US Postal Service showed continued revenue growth in May. Unaudited financial results show operating revenue at $5.5 billion for the month, up 3% from the same period last year (SPLY). Controllable expenses were up by just 1.7%, resulting in an operating deficit for the month of $70 million. Eight months into the fiscal year, that leaves the USPS with a year to date operating surplus of $1.3 billion. That compares with a $287 million loss at this point last year.
Controllable expenses exclude the Congressionally mandated accounting entries for the PAEA trust fund, and the non-cash workers comp future liability item, neither of which impact the USPS’s actual cash flow.
Total mail volume for the month was down by 1.7% for the month, 2.2% for the year to date. Package volume continues to grow, but it may be slowing- it was up 5.6% for the month, compared with 8.4% year to date. Despite the growth of the sector, packages still represent less than 20% of the postal service’s total revenue.