April personal income and spending rise. Real Personal spending +0.6% vs +0.4% est.

The personal income and spending data for the month of April showed good/strong gains. The personal income rose by 0.4% which was as expected but a good gain. It equaled the 0.4% gain in March.

Spending rose by a number greater than income at 1.0%. This was the largest month on month increase in 6 years. The real personal spending increased by 0.6%. The prior month spending was revised to 1.4% from 1.5%. When spending outstrips the income, that decreases the saving rate. It declined from 5.9% to 5.4%.

The data is good and has led to a slightly better tone in the dollar as traders will weigh each data point with the June FOMC approaching.