The April U.S. income figures beat estimates
The April U.S. income figures beat estimates with gains of 0.5% for income and 0.3% for consumption. Analysts saw the expected small boost for Q1 consumption revealed in yesterday's GDP report, but the boost was loaded into March to leave a firm start for Q2. Analysts also saw the expected big downward income revisions in Q4 and Q1, but these were concentrated over the four months through February to leave an up-tilt into Q2. The savings rate fell to 6.2% in April as analysts further unwound the December pop to a downwardly-revised high of 7.4% (was 7.7%) last seen in February of 2018. The rate is trending back toward the 6-year low of 6.0% (was 6.2%) last November as spending outpaces income. Analysts raised our Q2 GDP growth estimate to 1.8% from 1.6%, following the 3.1% Q1 pace, with 3.0% (was 2.5%) Q2 consumption growth. The PCE chain price gains of 0.3% (0.312%) overall and a firm 0.2% (0.247%) for the core beat the respective CPI gains of 0.3% (0.319%) and 0.1% (0.138%) as was expected, following downward Q1 revisions revealed Thursday.