-
US: Robust March Consumer Spending, but Q1 GDP Comes in a Little Light
Personal spending jumped 0.9% in March, right in line with the consensus forecast. More encouraging for consumer spending in the second quarter was the improvement in personal income growth to a better than expected 0.6% gain last month. Inflation readings heated up as expected with PCE and core PCE prices rising 0.7% and 0.3%, respectively, in line with our forecasts. Real personal spending, after adjusting for inflation, increased 0.2% in March, a slight moderation from February’s 0.3% gain but a solid showing, nevertheless. Goods spending increased 0.6% in real terms with strong increases in motor vehicles ... (full story)