Personal income increased 0.4% month-over-month in April (Briefing.com consensus 0.4%) following a 0.3% increase in March.
Personal spending increased 0.8% month-over-month (Briefing.com consensus 0.4%) following an upwardly revised 0.1% increase (from 0.0%) in March.
The PCE Price Index increased 0.4% month-over-month (Briefing.com consensus 0.3%) and was up 4.4% year-over-year versus 4.2% in March.
The core-PCE Price Index, which excludes food and energy, was up 0.4% (Briefing.com consensus 0.3%) and was up 4.7% versus 4.6% in March.
Real disposable personal income was flat month-over-month in April and up 3.4% year-over-year versus 3.3% in March.
Real personal spending was up 0.5% month-over-month and up 2.3% year-over-year versus 2.0% in March.
The personal savings rate as a percentage of disposable personal income decreased to 4.1% from 4.5% in March.
Wages and salaries increased 0.5% month-over-month following a 0.3% increase in March.
Rental income was up 1.5% month-over-month after a 1.4% increase in March.
Personal current transfer receipts decreased 0.4% month-over-month following a 0.1% increase in March.
The key takeaway from the report is the combination of a robust 0.5% increase in real spending and the uptick in the year-over-year rates for the PCE Price Index and core-PCE Price Index. That combination will give the Fed some pause about pausing its rate hikes in June.| APR | MAR | FEB | JAN | DEC | |
|---|---|---|---|---|---|
| Personal Income | |||||
| Total Income | 0.4% | 0.3% | 0.3% | 0.6% | 0.2% |
| Wage and Salary | 0.5% | 0.3% | 0.2% | 0.9% | 0.0% |
| Disposable Income | 0.4% | 0.3% | 0.5% | 2.2% | 0.3% |
| Savings Rate | 4.1% | 4.5% | 4.3% | 4.0% | 3.7% |
| Personal Consumption | |||||
| Total (Nominal) | 0.8% | 0.1% | 0.1% | 1.9% | 0.0% |
| Total (Real, Chain $) | 0.5% | 0.0% | -0.2% | 1.3% | -0.2% |
| Core PCE Deflator | |||||
| Month/Month | 0.4% | 0.3% | 0.4% | 0.6% | 0.4% |
| Year/Year | 4.7% | 4.6% | 4.7% | 4.7% | 4.6% |
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