Just out this morning, Personal Income in April grew by 10.5% and that comes as a big surprise to analysts who had anticipated a 5.9% fall. On the other side of things, Personal Spending plunged by 13.6% while pre-release estimates were looking for a 12.8% decline. Real Personal Spending, adjusted for inflation, fell 13.2%.
Also announced today was the half per-cent drop in the Personal Consumption Expenditures Index for April. That takes the year-over-year headline inflation rate to 0.5% from March’s 1.3%. At the core level, PCE fell by 0.4% last month for an April year-over-year rate of 1.0%, down from 1.7%. Bond prices are up and that has pushed the Ten-Year’s yield down to around 65 basis points. WTI is off a little bit at around $33/barrel while gold has rallied about $13 to $1,732.