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Wednesday, May 31, 2023 9:20:31 PM EDT

Personal Income and Spending Updated 26-May-23 09:45AM ET

Personal income increased 0.4% month-over-month in April ( consensus 0.4%) following a 0.3% increase in March.

Personal spending increased 0.8% month-over-month ( 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 ( 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% ( 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.
Personal Income
Total Income0.4%0.3%0.3%0.6%0.2%
Wage and Salary0.5%0.3%0.2%0.9%0.0%
Disposable Income0.4%0.3%0.5%2.2%0.3%
Savings Rate4.1%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