U.S. Weekly: Income, Spending, and Jobs

U.S. Weekly: Income, Spending, and Jobs

30 May 2016, 19:39
Roberto Jacobs

U.S. Weekly: Income, Spending, and Jobs

Consumption Expected to Rebound in April Alongside Ongoing Income Gains

It’s a busy week on the economic calendar as we come out of a long holiday weekend and head into the final month of the second quarter.

First, we close out April’s consumer data with the personal income and outlays report (Tuesday), with both components expected to post healthy gains for the month. Income has been gradually rising throughout the past year, though still subdued given ongoing labor market improvements and the fact that we are almost back to full employment.

The income gains we have seen did not translate into strong consumption in the first quarter – even with oil prices hitting 11-year lows in January – but instead led to an increase in savings. Personal spending is expected to rebound in April but it doesn’t completely erase the caution among consumers seen earlier this year.


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