Incomes Rose 0.4% in April, Spending Up 0.9%
Washington, DC, May 27, 2022-Personal income increased $89.3 billion (0.4%) in April, according to estimates released by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $48.3 billion (0.3%), and personal consumption expenditures (PCE) increased $152.3 billion (0.9%).
Real DPI increased less than 0.1% in April, and Real PCE increased 0.7%; goods increased 1.0%, and services increased 0.5%. The PCE price index increased 0.2%. Excluding food and energy, the PCE price index increased 0.3%.
A closely watched U.S. inflation reading eased in April for the first time this year while households boosted spending for the fourth straight month, according to the Wall Street Journal.
“Consumer spending rose by 0.9% in April and incomes increased 0.4%, the Commerce Department said Friday. But adjusted for inflation, disposable income was flat during the month, showing that wage increases are struggling to keep up with price rises.
“Inflation as measured by the personal-consumption expenditures price index rose 6.3% in April from a year earlier, down from 6.6% in March. It remained near its fastest pace since 1982 despite the slight deceleration.
“In April, the savings rate fell to 4.4%, the lowest in 14 years, suggesting that many Americans are tapping their savings to offset cost increases.
“The report showed consumers spent briskly on goods and services. High inflation and changes in spending patterns have led to a mixed outlook for retailers, while the leisure and travel industries are seeing stronger demand.”