Personal income in the United States saw a notable increase of 0.8% in April, significantly surpassing the expected rise of 0.3%. This information was reported by CNBC, highlighting a positive trend in the economy. The increase translates to an additional $210.1 billion in personal income for the month, according to the U.S. Bureau of Economic Analysis.
The White House’s Rapid Response account shared CNBC’s report, emphasizing that this growth is almost three times what analysts had predicted. Rick Santelli of CNBC noted that the numbers for the first four months of the year are impressive, with personal income rising consistently: 0.6% in January, 0.7% in February, and 0.5% in March, followed by the strong 0.8% boost in April.
Alongside personal income, disposable personal income (DPI) also increased by 0.8%, amounting to $189.4 billion. However, consumer spending showed a slower pace, rising only 0.2% in April, which aligns with expectations but is a decline from the 0.7% increase seen in March. This cautious approach to spending is reflected in the personal savings rate, which stood at 4.7%, with total personal savings reaching $1.12 trillion.
The Bureau of Economic Analysis pointed out that the April increase in personal income was mainly due to higher government social benefits and compensation. Meanwhile, personal consumption expenditures (PCE) increased by $47.8 billion, driven by a $55.8 billion rise in spending on services, although spending on goods dipped by $8 billion.
Santelli highlighted that this 0.8% jump in personal income is the strongest month-over-month increase since May 2021, when it peaked at 1.9%. These figures suggest a robust start to the year, even as consumer spending habits reflect a more cautious outlook.