‘And it will only get better,’ says President Donald Trump.
U.S. consumers earned more income, saved more money, and spent less in April, new U.S. government data show.
According to the Bureau of Economic Analysis, personal income rose by 0.8 percent, or $210.1 billion, to $25.858 trillion in April. This was up from the upwardly adjusted 0.7 percent jump in March.
Last month’s reading represented the largest month-over-month increase since May 2021 and far exceeded the consensus estimate of 0.3 percent.
The sizable jump was fueled by a 2.8 percent surge in personal current transfer receipts—money not tied to wages or active work, such as government social benefits—up from a 1.1 percent increase in the previous month.
Employee compensation rose by 0.5 percent, led by equal gains in private wages and salaries. In addition, the report revealed that wages and salaries in goods-producing industries declined by $3.1 billion, while wages and salaries in services-producing sectors soared by $53.1 billion.
Rental income remained flat, and personal income receipts from assets decreased by 0.4 percent.
Disposable personal income also swelled 0.8 percent, or $189.4 billion. The personal saving rate reached a one-year high of 4.9 percent.
At a White House event, President Donald Trump, alongside Elon Musk, called the data “rather extraordinary.”
The better-than-expected figures might only be temporary, says Yelena Shulyatyeva, a senior U.S. economist at The Conference Board.
“Personal income growth rose at a solid pace as the labor market remains healthy, but such strength may have been exaggerated by temporary factors,” Shulyatyeva said in a note.
The sharp jump likely reflected a one-off increase in Social Security benefits and higher compensation levels for trade and transportation workers, she said.
“We expect wages and salaries growth to slow as trade volumes subside,” Shulyatyeva added.