April core PCE price index jumped 0.7%, up 3.1% from a year ago

• April Personal Income and Outlays: -13.1% M/M vs. -14.1% consensus and +20.9% prior (revised from +21.1%)
• The drop indicated a decrease in government social benefits wherein other social benefits declined as economic impact payments made to individuals from the American Rescue Plan Act of 2021 continued, but at a lower level than in March.
• Consumer spending: +0.5% M/M vs. +0.5% consensus and +4.7% prior (revised from +4.2%)
• PCE Price Index: +0.6% M/M vs. +0.6% prior (revised from +0.5%)
• The $80.3B increase in current dollar personal consumption expenditures (PCE) in April was led by an increase of $112.6B in spending for services that was partly offset by a $32.3B decrease in spending for goods.
• Within services, the largest contributors to the increase were spending for recreation services and for food services and accommodations.
• Core PCE Price Index: +0.7% M/M vs. +0.6% consensus and +0.4% prior. The core rate of inflation is now up 3.1% based on this gauge.
• Personal saving stood at $2.81Tin April and the personal saving rate at 14.9%.