The Commerce Department informed on Friday that consumer spending in the
U.S. rose 0.9 percent m-o-m in April after an upwardly revised 0.4 percent
m-o-m jump (from 1.1 percent m-o-m) in March. Economists had predicted the reading to increase 0.7 percent
m-o-m.
Meanwhile, consumer income went up 0.4 percent m-o-m in April, following
an unrevised 0.5 percent m-o-m gain in the previous month. This
marked the weakest monthly advance in consumer income in three months. Economists had forecast a 0.5 percent m-o-m increase.
The April advance in personal income was mainly driven by an increase in
compensation and personal income receipts on assets, which, however, were
partly offset by a decline in proprietors' income.
Elsewhere, the personal consumption expenditures (PCE) price index,
excluding the volatile categories of food and energy, which is the Federal
Reserve's preferred inflation gauge, rose 0.3 percent m-o-m in April, the same
pace as in March. Economists had
projected the index would increase 0.3 percent m-o-m.
In the 12 months through April, the core PCE climbed 4.9 percent, slowing
from an unrevised 5.2 percent in the
12 months through March. This marked the lowest
rate since December 2021 (49 percent). Economists had foreseen a gain of 4.9 percent
y-o-y.