Spending Growth Comes in on Forecast

Economic data due on Friday include personal income for April, which is expected to rise 0.5 percent (actual 0.6), and spending, seen up 0.3 percent (actual was 0.3). The Chicago Purchasing Management Index, which measures business confidence in the U.S. Midwest, is expected to show continued growth in May but at a slower pace than in April, as high investories crimp auto production. The index is forecast at 61 compared with stronger-than-expected 63.9 in April.

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Spending Growth Comes in on Forecast

WASHINGTON (Reuters) - U.S. consumer spending rose as expected in April, government data showed on Friday, as shoppers made a solid start to the second quarter after a hefty contribution in the first three months of the year.

Personal spending was up 0.3 percent in April, the Commerce Department said, matching Wall Street forecasts. March's gain was revised to 0.5 percent from 0.4 percent initially reported.

The government said on Thursday spending rose 3.9 percent in the first quarter as households underpinned America's strong economic recovery. <snip>

The report also showed inflation slowing last month, with a price index for consumer spending gaining 0.1 percent after an unrevised 0.3 percent rise in March. The so-called core index, which strips out energy costs, also rose 0.1 percent, after climbing 0.2 percent the previous month. <snip>

Personal income rose 0.6 percent in April, slightly higher than forecasts of a 0.5 percent rise. Taking inflation and taxes into account left disposable income up 0.4 percent.

and avoid panic buying.

shopping.

the University of Michigan's final reading of its May index of consumer sentiment fell to 90.2 from April's 94.2,
expected was a median reading of 94.2.


Business activity in the U.S. Midwest expanded more rapidly than expected in May, encouraging more firms to start hiring, a report from the National Association of Purchasing Management-Chicago showed (for some reason the numbers are not on the internet as yet).