Income of Americans in April rose 0.4%, the expenses has not changed

02.06.2015

Revenues of the US population in April 2015 increased by 0.4% compared with the previous month, according to the Ministry of Commerce.

Analysts surveyed by Bloomberg, expected a rate growth of 0.3%.

Meanwhile, the spending of Americans last month have not changed since the March level, while experts predicted growth of 0.2%.

The PCE Core index (Personal Consumption Expenditures, Excluding Food & Energy), which is considered by the Federal Reserve System in the assessment of the risks of inflation, in April rose 0.1% and 1.2% in annual terms. Analysts had forecast an increase of the first indicator by 0.2%, and the second - by 1.4%.

Savings rate in April rose to 5.6% from 5.2% in March. The salaries and wages increase by 0.2% in monthly terms.

Analysts point out that Americans prefer not to spend the saved money as a result of lower fuel prices, and to use them for the payment of debts and increase savings. For a more active growth of spending, which accounts for about 70% of US GDP, there is the need for a more significant increase in wages in the country, experts say.

"The costs grow poorly in the second quarter - said a senior economist at Moody's Analytics - Ryan Sweet. - After such indicators for April, forecasts of many experts in the quarter as a whole now seem too optimistic. Things in the labor market in general are good, but the salary is growing too slowly".

Spending of the Americans for durable goods in April fell 0.7%, adjusted for inflation. The expenses for other goods, including gasoline, increased 0.5%. Expenses on services increased 0.2%.

Another indicator that comes from US is construction expenses in the United States, which rose in May more than expected. This is confirmed by the official data released on Monday. According to the report prepared by the Bureau of the Census, the indicator (seasonally adjusted) increased by 2.2% from 0.5% in April. The data for April were revised upward from -0.6%. Experts expected a growth rate for the last month to 0.7%.

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