US personal incomes jump, PCE inflation continues to ease

(Sharecast News) - Personal incomes in the US grew strongly in April, even as spending slowed following a jump during the previous month. In parallel, price pressures continued to ease.

According to the US Department of Commerce, in seasonally adjusted personal incomes rose by 0.8% month-on-month (consensus: 0.7%), after an upwardly revised 0.7% gain during the month before.

March's increase in personal incomes had originally been reported as an increase of 0.5%.

Personal consumption expenditures meanwhile were ahead by 0.2% over the month, as anticipated by economists, after increasing by 0.7% in March.

The year-on-year rate of increase in headline PCE prices meanwhile slowed from 2.3% to 2.1% (consensus: 2.2%).

Core PCE inflation slipped from 2.7% to 2.5%, as expected, although March's rate had initially been estimated at 2.6%.

Americans' personal rate of savings meanwhile jumped from 4.3% to 4.9%.

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