U.S. April personal income rose 0.5% with spending up 0.3%
U.S. April personal income rose 0.5% with spending up 0.3%. The 0.1% increase in March income was not revised, but spending was bumped up to a 1.1% gain from 0.9%, though February was nudged down to flat from 0.1%. Wages and salaries were up 0.3% versus 0.4%. Disposable income increased 0.4% from 0.1 (revised from unchanged). The savings rate rose to 6.2% versus 6.1% (revised from 6.5%). The PCE chain price index rose 0.3% from 0.2% (revised from 0.2%), and the core rate was up 0.2% from 0.1% previously (revised from unchanged). And on a 12-month basis, the headline accelerated to a 1.5% y/y clip versus 1.4% (revised from 1.5%). The core rate rose to 1.6% y/y from 1.5% y/y (revised from 1.6%). The report is firmer than expected but the market focus is on the escalating trade war for now.