Personal spending in the U.S. increased by more than expected in the month of April, according to a report released by the Commerce Department on Tuesday.
The Commerce Department said personal spending jumped by 1.0 percent in April after coming in unchanged in March. Economists had expected spending to climb by 0.7 percent.
Real spending, which is adjusted to remove price changes, increased by 0.6 percent after showing no change in the previous month.
The report also said personal income rose by 0.4 percent in April, matching the increase seen in the previous month as well as economist estimates.
Disposable personal income, or personal income less personal current taxes, increased by 0.5 percent in April after rising by 0.4 percent in March.
Reflecting the jump in spending, personal saving as a percentage of disposable personal income dropped to 5.4 percent from 5.9 percent.
On the inflation front, the Commerce Department said its personal consumption expenditures price index rose by 0.3 percent in April after inching up by 0.1 percent in March.
The annual rate of growth by the PCE price index subsequently accelerated to 1.1 percent in April from 0.8 percent in March.
Core PCE prices, which exclude food and energy prices, increased by 0.2 percent in April after ticking up by 0.1 percent in March. Annual growth came in at 1.6 percent, unchanged from the previous month.
by RTT Staff Writer
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