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Economic news
31.05.2024

U.S. consumer spending rises 0.2 per cent in April, income increases 0.3 per cent, core PCE price index advances 0.2 per cent

The Commerce Department announced on Friday that consumer spending in the U.S. rose 0.2 per cent m-o-m in April after a downwardly revised 0.7 per cent m-o-m jump (from +0.8 per cent m-o-m) in March. This marked the softest monthly rise in consumer spending in three months. Economists had forecast an increase of 0.3 per cent m-o-m for April.

Meanwhile, consumer income increased 0.3 per cent m-o-m in April, following an unrevised 0.5 per cent m-o-m climb in the previous month. Economists had predicted a 0.3 per cent m-o-m gain.

The April rise in personal income was mainly due to gains in compensation, personal income receipts on assets, and government social benefits to persons.

Elsewhere, the personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Federal Reserve's preferred inflation gauge, moved up 0.2 per cent m-o-m in April, following an unrevised 0.3 per cent m-o-m advance in March. This was the weakest monthly increase in the core PCE price so far this year. Economists had foreseen the indicator would rise 0.3 per cent m-o-m.

In the 12 months through April, the core PCE price index soared 2.8 per cent, the same pace as in the 12 months through March. Economists had expected a surge of 2.8 per cent y-o-y.

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