30 Apr 2015
US personal spending rose less than expected in March
FXStreet (Mumbai) - The US Commerce Department said on Thursday the consumer spending in March rose a seasonally adjusted 0.4%, missing the estimate of 0.5% growth. Personal spending in February stands unrevised at 0.1%.
Meanwhile, the personal income was flat in March as opposed to the expectation of a 0.3% rise compared to the February’s 0.4% rise. The core personal consumption expenditure price index cooled down to 1.3% on year in March, while it remained unchanged at 0.1% on month. The employment cost index rose 0.7% in Q1, better than 0.6% predicted. Another data showed, the initial jobless claims dropped to a 15-year low of 262K.
The jobless claims data supports the Fed’s optimistic view on the labor market despite the slowdown in the first quarter. Meanwhile, the weak personal income and spending report is a bad news, however, the data was included in the first quarter GDP report released on Wednesday, that showed the economy growing at only a 0.2% annual pace after a 2.2% rate in the fourth quarter.
Meanwhile, the personal income was flat in March as opposed to the expectation of a 0.3% rise compared to the February’s 0.4% rise. The core personal consumption expenditure price index cooled down to 1.3% on year in March, while it remained unchanged at 0.1% on month. The employment cost index rose 0.7% in Q1, better than 0.6% predicted. Another data showed, the initial jobless claims dropped to a 15-year low of 262K.
The jobless claims data supports the Fed’s optimistic view on the labor market despite the slowdown in the first quarter. Meanwhile, the weak personal income and spending report is a bad news, however, the data was included in the first quarter GDP report released on Wednesday, that showed the economy growing at only a 0.2% annual pace after a 2.2% rate in the fourth quarter.