In April, U.S. consumer spending rose by 0.2%, below the expected 0.3%, and down from March's 0.7% growth. Personal income increased by 0.3%, while the savings rate remained at 3.6%, the lowest since late 2022.

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Spending grew for services, especially in housing, healthcare, and financial services, but declined for goods, particularly recreational items. Real consumption expenditure fell by 0.1%.

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The $39.1 billion increase in current-dollar PCE in April reflected an increase of $49.1 billion in spending for services that was partly offset by a $10.0 billion decrease in spending for goods.

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Within services, the largest contributors to the increase were housing and utilities (led by housing), health care (both outpatient services and hospitals), and financial services and insurance (led by financial service charges, fees, and commissions).

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These increases were partly offset by a decrease in transportation services (led by air transportation).