Weak Spending, Strong Incomes: Economic Outlook
- consumer spending saw a modest increase of 0.2% in April, meeting analysts' expectations.
- While consumer spending grew by 3.11% in 2024, year-to-date spending is up only 0.39%.
- Housing and utilities, along with health care, led the gains in April consumer spending by category.
April’s financial snapshot shows a slight uptick in consumer spending, rising by 0.2%, aligning with forecasts. Simultaneously, personal income surged 0.8%, signaling a potential shift in the economic landscape. The figures reveal that while spending on services increased, goods saw a minor dip. This could be a sign of changing consumer behavior. News Directory 3 analysts are paying close attention to employment data for deeper insights into the state of the economy, monitoring whether these income gains will fuel greater spending in the coming months. Also, the growth in housing, utilities, and health care suggest shifting priorities. Discover what’s next for the consumer market.
Consumer Spending Edges Up in April Amid Income Gains
Updated June 02, 2025
U.S. consumer spending saw a modest increase of 0.2% in April, meeting analysts’ expectations. the latest figures reveal that spending on services grew by 0.4%, while spending on goods decreased slightly by 0.1%. After adjusting for inflation, real personal spending increased by 0.1%, a figure below the 12-month average of 0.25%.
While consumer spending grew by 3.11% in 2024, year-to-date spending is up only 0.39%. A significant portion of this increase is attributed to auto purchases made in anticipation of tariff increases.
Housing and utilities, along with health care, led the gains in April consumer spending by category.
Personal income rose by 0.8% in april, surpassing estimates of 0.3%. Incomes have outpaced inflation in 32 of the last 34 months.
Looking ahead, upcoming employment data and business surveys will provide further insights into the economy’s overall health.