WASHINGTON (MNI) - Personal income rose 0.4% in April, while nominal PCE was up 0.4%, and the core PCE price index rose 0.2%, data released by the Commerce Department Tuesday morning showed.
The gains in personal income and nominal PCE were right on expectations, while the gain in the core PCE price index was stronger than the 0.1% rebound expected after a March decline, but it was not enough to keep the year/year rate from slipping.
The core PCE price index's 1.5% year/year rise was down from 1.6% in March and now stands at its lowest point since 1.4% in December 2015.
The overall PCE price index was up 0.2% in April, as energy prices posted a 1.0% increase after declines in both February and March. The year/year rate for overall prices slipped to 1.7% from 1.9% in March.
The 0.4% gain in current dollar PCE reflected gains in both goods and services. Spending on durable goods rose by 0.9% in the month, while nondurable goods spending rose 0.6% and services spending was up 0.3%.
Real PCE rose 0.2% in April, with real spending on durable goods up 1.1% after inflation adjustment. Nondurables spending rose 0.5%, but services spending was flat. Real PCE growth was up 2.2% at a seasonally adjusted annual rate through April, compared with the first quarter's 0.6% real PCE increase.
Wages and salaries rose 0.7% as payrolls growth rebounded, but the other income components were mixed, with a sharp rise in rental income and a small increase in transfer receipts offset by declines in proprietors income and personal interest income.
Disposable personal income posted a 0.4% gain in the month, while real disposable income was up 0.2%.
