Connect With PPD
Follow Us:
Economy

Consumer Spending Posts Biggest Gain in More Than 6 Years

A shopper organizes his cash before paying for merchandise at a Best Buy Co. store in Peoria, Illinois, U.S., on Friday, Nov. 23, 2012. (Photo: Daniel Acker/Bloomberg/Getty)

The Commerce Department said on Tuesday consumer spending increased 1.0%, the largest gain in more than 6 years and more than the median forecast for 0.7%. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, was also revised down in March to show flat instead of the previously reported 0.1%.

Personal income increased 0.4% in March, matching the median forecast.

Still, last month’s increase was the largest gain since August 2009 and, when adjusted for inflation, increased 0.6%. That’s the biggest gain since February 2014, after being flat in March.

The personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, rose 0.2% last month after edging up 0.1% increase in March. In the 12 months through April the core PCE rose 1.6% after a similar increase in March.

Meanwhile, even though the data could be construed as another reason to anticipate the Federal Reserve will hike rates later this year, the core PCE is the Fed’s preferred inflation measure. Currently, it is running below the U.S. central bank’s 2% target.

READ FULL STORY

SubscribeSign In
PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Share
Published by
PPD Business Staff

Recent Posts

Media’s Worst Russian Collusion Sins May Soon Be Repeated

The most damning journalistic sin committed by the media during the era of Russia collusion…

1 year ago

Study: Mask-Mandates and Use Not Associated With Lower Covid-19 Case Growth

The first ecological study finds mask mandates were not effective at slowing the spread of…

4 years ago

Barnes and Baris on Big Tech’s Arbitrary Social Media Bans

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris note how big tech…

4 years ago

Barnes and Baris on Why America First Stands With Israel

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris discuss why America First…

4 years ago

Personal Income Fell Significantly in February, Consumer Spending Weaker than Expected

Personal income fell $1,516.6 billion (7.1%) in February, roughly the consensus forecast, while consumer spending…

4 years ago

Study: Infection, Vaccination Protects Against Covid-19 Variants

Research finds those previously infected by or vaccinated against SARS-CoV-2 are not at risk of…

4 years ago

This website uses cookies.