US Personal Spending Falls in April

Personal consumption expenditure dropped for the first time in a year by 0.1 percent in April, following a revised 1 percent increase in the previous month, due to lower purchases of motor vehicles. However, the personal consumption price index increased 0.2 percent.
U.S. Bureau of Economic Analysis | Joana Taborda | joana.taborda@tradingeconomics.com 5/30/2014 1:46:33 PM
Real PCE decreased 0.3 percent in April, in contrast to an increase of 0.8 percent in March. Purchases of durable goods decreased 0.5 percent, in contrast to an increase of 3.7 percent. Purchases of motor vehicles and parts accounted for most of the decrease in April and for most of the increase in March. Purchases of nondurable goods decreased 0.3 percent in April, in contrast to an increase of 0.5 percent in March. Purchases of services decreased 0.2 percent, in contrast to an increase of 0.5 percent.

The price index for PCE increased 0.2 percent in April, the same increase as in March. The PCE price index, excluding food and energy, increased 0.2 percent in April, the same increase as in March.

Personal income increased $43.7 billion, or 0.3 percent, and disposable personal income (DPI) increased $44.6 billion, or 0.3 percent, in April. Personal consumption expenditures (PCE) decreased $8.1 billion, or 0.1 percent. In March, personal income increased $76.3 billion, or 0.5 percent, DPI increased $65.0 billion, or 0.5 percent, and PCE increased $117.6 billion, or 1.0 percent, based on revised estimates.

Private wages and salaries increased $16.9 billion in April, compared with an increase of $44.6 billion in March. Goods producing industries' payrolls decreased $0.1 billion, in contrast to an increase of $10.2 billion; manufacturing payrolls decreased $1.2 billion, in contrast to an increase of $7.8 billion.  Services-producing industries' payrolls increased $16.9 billion, compared with an increase of $34.5 billion.  Government wages and salaries increased $1.4 billion, compared with an increase of $0.9 billion.

US Personal Spending Falls in April