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.
