US: Personal income likely rose 0.4% in April - Nomura

Analysts at Nomura expect that US personal income likely rose at a trend-like pace of 0.4% m-o-m in April, after rising 0.3% in March.

Key Quotes

“We expect a healthy 0.5% m-om increase in personal spending in April, reflecting a solid 0.4% m-o-m increase in core (“control group”) retail sales which exclude volatile components. Retail sales data suggest that momentum in personal spending could firm in Q2, after softness in Q1. Sales at most vendors rose steadily in April. Sales at auto dealerships were up 0.2% mo-m, implying that consumer purchases of autos rose modestly. Among non-core components, receipts at gasoline stations grew 0.8% m-o-m, reflecting higher retail gasoline prices during the spring driving season. Looking ahead, the recent tax cuts and healthy labor market should support consumer spending.”