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Consumer spending flat, personal income rises in April

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Consumer spending flat, personal income rises in April

Spending misses estimates, savings rate up.

Personal income increased $59.4 billion, or 0.4%, and disposable personal income increased $48.8 billion, or 0.4%, in April, according to the Bureau of Economic Analysis.

Personal consumption expenditures were basically flat, falling less than 0.1%.  

In March, personal income increased $4.0 billion, or less than 0.1%, DPI increased $0.5 billion, or less than 0.1%, and PCE increased $65.6 billion, or 0.5%, based on revised estimates.

Economists had expected consumer spending (PCE) to increase 0.2% in April. 

Wages and salaries increased $17.7 billion in April, compared with an increase of $9.5 billion in March. Private wages and salaries increased $15.7 billion, compared with an increase of $8.4 billion. Government wages and salaries increased $2.0 billion, compared with an increase of $1.0 billion.

The combination of the rise in personal income and flat consumer spending led to increased savings, as personal savings were $744.0 billion in April, compared with $692.5 billion in March. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 5.6% percent in April, compared with 5.2% in March.

The full report can be found here.

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