Fra Zerohedge
Having disappointed in March (just +0.1% MoM), expectations for April’s personal spending were sky high at +0.7% MoM, despite expectations of a 0.4% rise in incomes. Analysts were not disappointed as theheadline spending print was a 7-year high +1.0% MoM spike driven by a 3.8% MoM surge in Energy spending. With income rising as expected at 0.4% MoM, and thanks to revisions, the savings rate tumbled to its lowest since 2015.
Sustainable? The 2nd biggest spike in spending since 2005…
Thanks to the biggest monthly spike in energy spending since September 2005…
With spending spiking and income rising only modestly – and thanks to revisions – the savings rate plunged in April…
So last month’s 5.4% savings rate – which was already the highest since 2012 – was revised to 5.9%, and it plunged back to 5.4% from there.
