Personal income grew at a seasonally adjusted monthly rate of 0.5% in April, after rising 0.5% in March, the Commerce Department reported Friday, while a key reading on inflation may spark concerns about higher interest rates.
Spending on durable goods, or items designed to last three years or longer, rose by 0.3% in April, after a 0.4% increase in March. Non-durable goods spending jumped by 1.3%, after a 0.4% increase in March.
An index for personal consumption expenditures excluding food and energy - considered the "core" price gauge - increased by 0.2% in April, after a 0.3% increase in March. Compared to a year earlier, the core increased by 2.1% during April, after rising 2.0% in March. The April reading is slightly higher than what Federal Reserve officials might be comfortable with, and could lead to further expectations of higher interest rates.
April personal consumption increased by 0.6%, after a revised 0.5% increase the month before. March spending was originally seen up 0.6%.
Disposable personal income - income after taxes - rose by 0.4%, following a revised 0.4% increase in March. Adjusted for inflation, disposable income fell 0.1% in April.
Personal saving as a percentage of disposable personal income was a negative 1.6% during April - the smallest rate since a negative 3.3% in August 2005.