US Personal Spending Rises The Most In 4 Months

Personal spending in the United States rose 0.4 percent on the month in April of 2017, following an upwardly revised 0.3 percent gain in March, matching market expectations. It is the biggest increase so far this year, boosted by a rebound in spending on durable and nondurable goods.

Consumption rose by USD 53.2 billion, boosted by a recovery in durable (0.9 percent from -0.4 percent in March) and nondurable goods (0.6 percent from -0.2 percent). On the other hand, spending rose less for services (0.3 percent from 0.6 percent). 

Personal income also increased 0.4 percent or USD 58.4 billion, higher than 0.2 percent in March and in line with expectations. It primarily reflected a rise in private wages and salaries.

Personal outlays increased USD 56.4 billion in April and personal saving was USD 759.1 billion. The personal saving rate was steady at 5.3 percent. 

Disposable personal income (DPI) went up 0.4 percent or USD 56.5 billion. Real DPI increased 0.2 percent and real PCE rose 0.2 percent.

The PCE price index increased 0.2 percent after a 0.2 percent fall in March. Excluding food and energy, the PCE price index went up 0.2 percent, following a 0.1 percent decline in the previous month. 

US Personal Spending Rises The Most In 4 Months

BEA | Joana Taborda |
5/30/2017 12:43:50 PM