Updated: 30-May-25 09:23 ET
Highlights
- Personal income increased a robust 0.8% month-over-month in April (Briefing.com consensus 0.3%) following an upwardly revised 0.7% increase (from 0.5%) in March.
- Personal spending rose 0.2% month-over-month, as expected, following an unrevised 0.7% increase in March.
- The PCE Price Index was up 0.1% month-over-month, as expected, which left it up a palatable 2.1% year-over-year versus 2.3% in March.
- The core-PCE Price Index was also up 0.1%, as expected, leaving it up 2.5% year-over-year versus 2.7% in March.
- The PCE Price Index for Goods was up 0.1% month-over-month and down 0.4% year-over-year versus down 0.3% in March. The PCE Price Index for Services was up 0.1% month-over-month, leaving it up 3.3% year-over-year versus 3.5% in March.
- Wages and salaries increased 0.5% month-over-month after increasing 0.5% in March.
- Rental income was flat month-over-month after increasing 0.6% in March.
- Personal interest income rose 0.1% month-over-month after increasing 0.2% in March. Personal dividend income was down 1.0% month-over-month after increasing 0.4% in March.
- Real disposable income was up 0.7% month-over-month and was up 2.9% year-over-year versus 2.1% in March. Real personal spending increased 0.1% month-over-month and was up 3.2% year-over-year.
- The personal savings rate, as a percentage of disposable personal income, increased to 4.9% from 4.3% in March.
- The key takeaway from the report is manifold: inflation rates are moderating, personal income growth is strong, and the personal savings rate picked up to 4.9% from 4.3% in March, which points to pent-up spending potential that will keep the economy on a growth track in the second quarter.
| Category | APR | MAR | FEB | JAN | DEC |
| Personal Income | |||||
| Total Income | 0.8% | 0.7% | 0.8% | 0.5% | 0.4% |
| Wage and Salary | 0.5% | 0.5% | 0.5% | 0.2% | 0.5% |
| Disposable Income | 0.8% | 0.7% | 0.8% | 0.5% | 0.4% |
| Savings Rate | 4.9% | 4.3% | 4.4% | 4.1% | 3.5 |
| Personal Consumption | |||||
| Total (Nominal) | 0.2% | 0.7% | 0.4% | -0.1% | 0.9% |
| Total (Real, Chain $) | 0.1% | 0.7% | 0.0% | -0.5% | 0.6% |
| Core PCE Deflator | |||||
| Month/Month | 0.1% | 0.1% | 0.5% | 0.3% | 0.2% |
| Year/Year | 2.55 | 2.7% | 2.9% | 2.7% | 2.9% |
