Corrects drop in core PCE in April
Consumer spending in the U.S. fell 13.6% in April, the government reported Friday. Economists polled by MarketWatch had expected a 13% decrease, compared with an original estimate of 7.5% decline in March. On Friday the Commerce Department revised consumer spending in March to an decrease of 6.9%. Meanwhile, personal income rose 10.5% in April, boosted by government payments. Economists had expected an decrease of 2.1%, compared with an originally reported decline of 2% in March. On Friday, the government revised March’s decline for personal income to 2.2%. Inflation, as measured by an index for personal consumption expenditures, fell 0.5% last month. The core inflation index, which excludes food and energy, was down 0.4%. Over the past 12 months, the broad PCE index rose 0.5%, down from 1.3% in March, while the core gauge grew 1%, down from 1.7% in the prior month.