Consumer spending growth remained modest in April, rising 0.3%. Personal income rose 0.2% over the month leading the savings rate to plunge to 3.4%. Personal income growth of 0.2% is its slowest pace since November, and well below the average of 3.7% set in the first quarter.
Spending growth rose from its March pace, but remains well below the first quarter average of 5%. Durable goods spending led the increase, growing 0.6% over the month. Nondurable goods spending fell 0.2% over the month. Service spending also contributed to growth, rising 0.4%. Consumption now remains 4.0% above year ago levels.
Personal income growth slowed in April due to declines in wage growth and disposable income growth. Wage growth slowed to 0.2% in April, its slowest pace of the year. Disposable income growth fell as well, down to 0.2% from 0.4% in March. Personal income now remains 2.8% above year ago levels.
The savings rate dropped to 3.4% in April, matching its lowest level since 2007.
Read the BEA release.