March Consumer Spending Grows 0.6%, Personal Income Up 0.5%

March Consumer Spending Grows 0.6%, Personal Income Up 0.5%



Apr 29, 2011

March consumer spending was better than many had feared, showing a 0.6% rise in current dollar terms according to the Commerce Department, slightly higher than the 0.5% increase economists' had expected.

When adjusted for inflation, spending increased 0.2% in the month after rising 0.5% in January.

Consumer spending in both January and February was revised higher, with February spending getting bumped to 0.9% from 0.7%, and January spending to 0.5% from an initially estimated 0.3% increase.

It was feared higher energy prices could more severely slow consumers' spending. The personal consumption index (PCE) rose 0.4% in March after an increase of the same amount in February. Year-over-year the PCE is up 1.8%.

Core PCE, which excludes food and fuel, was up only 0.1% in March, after rising 0.2% in February, and is up 0.9% year-over-year.

Personal income for the month rose 0.5% in March, beating the expectation for a 0.3% gain.