U.S. consumer spending unchanged in March; inflation subsides
Source: Reuters
Business News | Mon May 1, 2017 | 8:44am EDT
U.S. consumer spending unchanged in March; inflation subsides
U.S. consumer spending was unchanged in March for a second straight month and the overall monthly inflation rate fell for the first time in a year, confirming the weak domestic demand in the first quarter.
But when adjusted for inflation consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.3 percent, ending two straight months of decline, the Commerce Department said on Monday.
Economists polled by Reuters had forecast consumer spending, rising 0.2 percent. The data was included in last Friday's first-quarter gross domestic product report, which showed consumer spending increasing at a 0.3 percent annual rate - the slowest since the fourth quarter of 2009.
The economy grew at a 0.7 percent pace in the first quarter, the worst performance in three years. ... March's increase in real consumer spending sets it up for an acceleration in the second quarter. Consumption is likely to be supported by a pick-up in wage growth. A report on Friday showed private wages recorded their biggest increase in 10 years in the first quarter.
Read more: http://www.reuters.com/article/us-usa-economy-idUSKBN17X1P4
https://www.bea.gov/newsreleases/rels.htm
Personal Income and Outlays, March 2017 {5/1/17}
https://www.bea.gov/newsreleases/national/pi/2017/pi0317.htm
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Monday, May 1, 2017
BEA 17—20
* See the navigation bar at the right side of the news release text for links to data tables, contact personnel and their telephone numbers, and supplementary materials.
Technical: James Rankin (301) 278-9087 (Personal Income) piniwd@bea.gov
Harvey Davis (301) 278-9086 (PCE) pce@bea.gov
Media: Jeannine Aversa (301) 278-9003 jeannine.aversa@bea.gov
PERSONAL INCOME AND OUTLAYS, MARCH 2017
Personal income increased $40.0 billion (0.2 percent) in March according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $35.0 billion (0.2 percent) and personal consumption expenditures (PCE) increased $5.7 billion (less than 0.1 percent).
Real DPI increased 0.5 percent in March and Real PCE increased 0.3 percent. The PCE price index decreased 0.2 percent. Excluding food and energy, the PCE price index decreased 0.1 percent.
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Next release: May 30, 2017 at 8:30 A.M. EDT
Personal Income and Outlays: April 2017
