US Personal Spending Rises 0.4%, in Line with Expectations


Personal spending in the United States increased 0.4 percent month-over-month in March of 2018 after being flat in the previous month. It matched market expectations amid a recovery in consumption of durable goods. When adjusted for inflation, consumer spending also increased 0.4 percent.

Personal consumption expenditures (PCE) increased $61.7 billion or 0.4 percent. Spending on durables rebounded (0.8 percent compared to -0.4 percent in February) and rose faster for services (0.6 percent compared to 0.2 percent). On the other hand, spending on nondurables fell 0.2 percent, following a 0.4 percent fall in February. 

Real PCE went up 0.4 percent or $50.0 billion, reflecting an increase of $24.2 billion in spending for goods and a $26.8 billion increase in spending for services. Within goods, purchases of recreational goods and vehicles was the leading contributor to the increase. Within services, the largest contributor to the increase was spending for household electricity and gas.

Personal income increased 0.3 percent or $47.8 billion, the same as in the previous month and slightly below market expectations of a 0.4 percent gain. It primarily reflected increases in wages and salaries, social security benefits, and dividend income.

Disposable personal income (DPI) increased $39.8 billion or 0.3 percent and real DPI went up 0.2 percent. 

The personal consumption expenditures (PCE) price index was flat on the month after a 0.2 percent rise in February. Excluding food and energy, PCE prices went up 0.2 percent, the same as in February. On the year, the PCE rose 2 percent from 1.7 percent and the core one also increased 1.9 percent from 1.6 percent. 

US Personal Spending Rises 0.4%, in Line with Expectations


BEA | Joana Taborda | joana.taborda@tradingeconomics.com
4/30/2018 12:59:03 PM