Personal income increased 0.4% month-over-month in April (consensus 0.4%) following a 0.3% increase in March.
Personal spending increased 0.8% month-over-month (consensus 0.4%) following an upwardly revised 0.1% increase (from 0.0%) in March.
The PCE Price Index increased 0.4% month-over-month (consensus 0.3%) and was up 4.4% year-over-year versus 4.2% in March.
The core-PCE Price Index, which excludes food and energy, was up 0.4% (consensus 0.3%) and was up 4.7% versus 4.6% in March.
The key takeaway from the report is the combination of a robust 0.5% increase in real spending and the uptick in the year-over-year rates for the PCE Price Index and core-PCE Price Index. That combination will give the Fed some pause about pausing its rate hikes in June.