FXstreet.com (Barcelona) - Personal spending has increased above expectations in the United States in March, while personal income slowed down and the PCE prices index accelerated, according to the latest Personal Income and Outlays report published by the Commerce Department.
Personal income rose by 0.3% in March or $38.8 billion, down from the 0.5% increase posted in February. Real disposable income rose 0.1% in March, down from the 0.3% increase posted in February.
Personal spending, however has rises at a pace twice as fast as expected, posting a 0.4% increase from the previous month, which means $42.9 billion, up from the 0.1% unrevised increase posted in February, and also above the 0.2% increase forecasted by the experts.
Personal consumption expenditures price index has increased 3.2% year on year, which is slightly below the 3.4% year on year increase posted in February, but the Core PCE prices index, a gauge used by the Fed for hints about inflation trends, has increased 2.1% ion the year in March, up from the 2.0% year on year increase posted in February.