Personal income in the U.S. rose by more than expected in the month of April, according to a report released by the Commerce Department on Friday, with the report also showing a slightly bigger than expected increase in personal spending.
The Commerce Department said personal income climbed by 0.5 percent in April after inching up by 0.1 percent in March. Economists had expected personal income to rise by 0.3 percent.
Disposable personal income, or personal income less personal current taxes, increased by a slightly more modest 0.4 percent in April following a 0.1 percent uptick in the previous month.
The report also said personal spending increased by 0.3 percent in April after spiking by an upwardly revised 1.1 percent in March.
Personal spending had been expected to edge up by 0.2 percent compared to the 0.9 percent jump originally reported for the previous month.
Real spending, which is adjusted to remove price changes, was unchanged in April following a 0.9 percent increase in March.
“The saw-toothed pattern of consumption — strong one month, weak the next — continued in April, suggesting households are struggling to keep the economy‘s consumer engine running,” said Chris Low, Chief Economist at FTN Financial.
With income rising by more than spending, personal saving as a percentage of disposable personal income crept up to 6.2 percent from 6.1 percent.
A reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth also crept up to 1.6 percent in April from 1.5 percent in March.
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