Personal Income and Spending Do Not Signal Snapback Economy
Personal income and spending data do not exactly give the brightest picture for the month of April. Friday's report from the U.S. Department of Commerce showed that personal income rose by 0.3% and spending fell by 0.1%.
Bloomberg had estimates at 0.4% on personal income and was expecting a 0.2% gain in spending.
March's spending was revised slightly higher to 1.0% from 0.9% that had been previously reported.
What this report does is signal that incomes and spending, particularly spending, are not seeing a robust snapback after harsh weather in the first quarter. With gross domestic product at -1% in the first quarter, and with so many retail chains offering weak earnings and weak guidance, this report does not exactly bring any great confidence that the economy is experiencing a major bounce in the second quarter.
Stocks were higher this morning, but S&P futures were down 2.50 and DJIA futures were down about 20 points after the report hit.
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Filed under: Economy