Department reported on Friday that consumer spending in the U.S. tumbled 13.6
percent m-o-m in April after a revised 6.9 percent m-o-m plunge in March (originally,
a 7.5 percent m-o-m decline). That was the largest monthly decline in personal
spending on record. Economists had forecast the reading to show a 12.6 percent
Meanwhile, consumer income surged 10.5 percent m-o-m in April, following a revised 2.2 percent m-o-m drop in the previous month (originally, a 2.0 percent m-o-m fall). That was the biggest monthly rise ever in personal income. Economists had forecast a 6.5 percent m-o-m decline.
The April surge in personal income primarily reflected an increase in government social benefits to persons as payments were made to individuals from federal economic recovery programs in response to the COVID-19 pandemic.
The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, fell 0.4 percent m-o-m in April, following an unrevised 0.1 percent m-o-m decrease in the prior month. Economists had projected the index would drop 0.3 percent m-o-m.
In the 12 months through April, the core PCE increased 1.0 percent, following an unrevised 1.7 percent growth in the 12 months through March. Economists had forecast an advance of 1.1 percent y-o-y.
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.