Washington, DC, April 29—-Personal spending and income both rose to higher-than-expected levels in March. The Commerce Department reported that personal income rose 0.5% in March and that consumer spending was up 0.6% during the month.
Economists had forecast an increase of 0.4% in consumer spending and an increased of 0.5% in consumer income.
The March personal savings rate fell to 0.4%, the smallest rate since October 2001. Read the full report.
Consumer prices rose 0.5% in March, the largest increase in 15 years. Excluding volatile food and energy prices, however, the core rate of inflation - measured by the personal consumption expenditure price index - increased 0.3%.
Consumer prices are up 2.4% in the last year. Core prices are up 1.7%. The March number represents a steady rise in the prices of consumer goods and services.
Adjusted for inflation, personal spending rose 0.1%.
Spending on durable goods rose 2.2%, while outlays on nondurable goods fell 1%. Consumer spending on services rose 0.3%.
