The
Commerce Department reported on Friday that consumer spending in the U.S. rose 0.5
percent m-o-m in April after a revised 4.7 percent m-o-m jump in March (originally
a 4.2 percent m-o-m increase). Economists had
forecast the reading to show a 0.5 percent m-o-m gain.
Meanwhile,
consumer income tumbled 13.1 percent m-o-m in April, following a revised 20.9
percent m-o-m climb in the previous month (originally a 21.1 percent m-o-m surge). Economists had forecast a 14.1 percent m-o-m decline.
The April
drop in personal income primarily reflected a decrease in government social
benefits. Within government social benefits, "other" social benefits fell
as economic impact payments made to individuals from the American Rescue Plan
Act of 2021 continued, but at a lower level than in March. Unemployment
insurance also declined, led by decreases in payments from the Pandemic Unemployment
Compensation program.
The
personal consumption expenditures (PCE) price index, excluding the volatile
categories of food and energy, which is the Fed's preferred inflation measure,
increased 0.7 percent m-o-m in April, following an unrevised 0.4 percent m-o-m
advance in March.
Economists had projected the index would increase 0.6 percent m-o-m.
In
the 12 months through April, the core PCE surged 3.1 percent, accelerating from
a revised 1.9 percent in the 12 months through March (originally a 1.8 percent jump).
Economists had forecast an advance of 2.9 percent y-o-y. This was the highest reading
since the 1990s and exceeded the Fed’s 2-percent target.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
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 pr@teletrade.global.