Consumer Spending Worse Than Expected

customer shopper shopping bags

Consumer spending did not change in April, while economists surveyed by Reuters expected an increase of 0.3%.

Consumer income also disappointed with a 0.4% rise, while economists expected an increase of 0.5%.

From the BEA:

Personal income increased $54.4 billion, or 0.4 per cent, and disposable personal income (DPI) increased $57.6 billion, or 0.5 per cent, in April, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $4.0 billion, or less than 0.1 per cent.  In March, personal income increased $46.7 billion, or 0.4 per cent, DPI increased $44.1 billion, or 0.4 per cent, and PCE increased $59.8 billion, or 0.6 per cent, based on revised estimates.

Real disposable income increased 0.5 per cent in April, compared with an increase of 0.3 per cent in March.  Real PCE increased less than 0.1 per cent, compared with an increase of 0.5 per cent.

bea

Wages and salaries

Private wage and salary disbursements increased $24.4 billion in April, compared with an increase of
$13.7 billion in March.  Goods-producing industries’ payrolls increased $5.8 billion, compared with
an increase of $4.1 billion; manufacturing payrolls increased $4.5 billion, compared with an increase
of $1.6 billion.  Services-producing industries’ payrolls increased $18.6 billion, compared with an
increase of $9.6 billion.  Government wage and salary disbursements increased $1.9 billion, compared
with an increase of $2.9 billion.

Personal outlays and personal saving

Personal outlays — PCE, personal interest payments, and personal current transfer payments — increased
$1.8 billion in April, compared with an increase of $61.9 billion in March. PCE increased $4.0 billion,
compared with an increase of $59.8 billion.

Personal saving — DPI less personal outlays — was $398.5 billion in April, compared with $342.7 billion
in March.  Personal saving as a percentage of disposable personal income was 3.6 per cent in April,
compared with 3.1 per cent in March.  For a comparison of personal saving in BEA’s national income and
product accounts with personal saving in the Federal Reserve Board’s flow of funds accounts and data
on changes in net worth, go to http://www.bea.gov/national/nipaweb/Nipa-Frb.asp.

See the official release from the BEA here >

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