(RTTNews) - U.S. personal income and spending figures released by the Commerce Department on Friday will come as little surprise to most market watchers, with the key benchmarks all increasing in line with economists' expectations.
Personal income increased by 0.4 percent in April, according to Commerce Department figures, with the increase matching the growth seen in each of the two previous months.
Consumer spending also rose by 0.4 percent in April following a 0.5 percent increase in March. Both increases were in line with what most economists had predicted.
The report also showed that disposable personal income, or personal income less personal current taxes, increased by 0.3 percent in April compared to a 0.4 percent increase in March.
With spending and income increasing at roughly the same rate, personal saving as a percentage of disposable personal income was unchanged from the previous month at 4.9 percent.
The Commerce Department said its consumer price index increased by 0.3 percent in April, somewhat slower than the 0.4 percent increase in March.
Removing the volatile energy and food sectors, the price index increased by a more modest 0।2 percent in April compared to a 0.1 percent increase in the previous month.
The report said real disposable personal income, which is adjusted for price changes, fell by less than 0.1 percent in April in contrast to an increase of less than 0.1 percent in March.
Paul Dales, Senior U.S. Economist at Capital Economics, said, "Put simply, the increase in prices has almost exactly offset the boost to nominal incomes from some decent gains in employment and the payroll tax cut."
Meanwhile, real personal spending edged up by 0.1 percent in April, matching the increase seen in March.
"Unless real incomes rebound sharply, which we believe is unlikely, real consumption growth will remain subdued," Dales said.
by RTT Staff Writer
www.rttnews.com
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