Personal Income increased 0.3% in April, Spending decreased 0.1% - InvestingChannel

Personal Income increased 0.3% in April, Spending decreased 0.1%

The BEA released the Personal Income and Outlays report for April:

Personal income increased $43.7 billion, or 0.3 percent … in April, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $8.1 billion, or 0.1 percent.

Real PCE — PCE adjusted to remove price changes — decreased 0.3 percent in April, in contrast to an increase of 0.8 percent in March. … The price index for PCE increased 0.2 percent in April, the same increase as in March. The PCE price index, excluding food and energy, increased 0.2 percent in April, the same increase as in March. … The April price index for PCE increased 1.6 percent from April a year ago. The April PCE price index, excluding food and energy, increased 1.4 percent from April a year ago.

The following graph shows real Personal Consumption Expenditures (PCE) through April 2013 (2009 dollars). Note that the y-axis doesn’t start at zero to better show the change.

Personal Consumption Expenditures Click on graph for larger image.

The dashed red lines are the quarterly levels for real PCE.

This is just one month for Q2 – and the month-to-month decline in PCE was due to the surge in spending in March (following the severe winter).  

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