Personal income rose 0.2% in April, topping the forecast of 0.1%, and March was revised slightly higher. Personal spending increased 0.2% and matched expectations. The PCE Price Index, which is released with the income and spending data, rose 0.2% in April and held at 3.2% year-over-year (y/y), just above the estimate of 3.1%.
The Chicago Purchasing Managers’ Index rose from 48.3 in April to 49.1 in May, beating the estimate of 48.5. The index remains below 50 that marks expansion and contraction, but the measure of manufacturing in the Midwest is up for the third-straight month. Pricing pressures remain a big concern, with the Prices Index rising from 82.9 to 87.5.
Final University of Michigan consumer sentiment rose from 59.5 in the preliminary reading to 59.8 in May, just above an expected reading of 59.5. But sentiment remains just above a 28-year low in a sluggish economy with weak labor market conditions, high gasoline prices, and falling home prices.
Details from Bloomberg...
