Personal Income Gained 0.5%, Consumer Spending By 0.3%, Beating Forecasts

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The Bureau of Economic Analysis (BEA) said personal income gains beat the consensus forecast in April, rising $92.8 billion (0.5%). The reflected increases were fueled by personal interest income, wages and salaries, and government social benefits to persons.

Prior Consensus Forecast Forecast Range Actual Personal Income – M/M ∆ 0.1 % 0.3 % 0.1 % to 0.4 % 0.5% Consumer Spending – M/M ∆ 0.9 % 0.2 % 0.1 % to 0.3 % 0.3% PCE Price Index M/M ∆ 0.2 % 0.3 % 0.2 % to 0.3 % 0.3% Core PCE price index – M/M ∆ 0.0 % 0.2 % 0.0 % to 0.3 % 0.2% PCE Price Index Y/Y ∆ 1.5 % 1.6 % 1.5 % to 1.6 % 1.5% Core PCE price index – Yr/Yr ∆ 1.6 % 1.6 % 1.5 % to 1.7 % 1.6%

Disposable personal income (DPI) rose $69.3 billion (0.4%) and personal consumption expenditures (PCE) gained $40.8 billion (0.3%).

Real DPI increased 0.1% in April and Real PCE decreased less than 0.1%. The PCE price index increased 0.3%. Excluding food and energy, the PCE price index increased 0.2%.

Meanwhile, personal outlays increased $42.7 billion in April (table 3). Personal saving was $990.3 billion in April and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.2%.