Personal Income and Spending Do Not Signal Snapback Economy

Bloomberg had estimates at 0.4% on personal income and was expecting a 0.2% gain in spending.

March’s spending was revised slightly higher to 1.0% from 0.9% that had been previously reported.

What this report does is signal that incomes and spending, particularly spending, are not seeing a robust snapback after harsh weather in the first quarter. With gross domestic product at -1% in the first quarter, and with so many retail chains offering weak earnings and weak guidance, this report does not exactly bring any great confidence that the economy is experiencing a major bounce in the second quarter.

Stocks were higher this morning, but S&P futures were down 2.50 and DJIA futures were down about 20 points after the report hit.

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