Summary
Consumers cut back on goods outlays in April after pulling forward demand in prior months, which was offset by sustained demand for services, mostly housing, utilities and healthcare. At this early stage, inflation appears largely un-impacted by tariffs. Social Security payments boosted income.In All Fairness, Social Security Drove the Jump in Income
Personal income shot higher in April rising 0.8%, well north of the 0.3% that had been expected. The fact that it comes on the heels of an upwardly revised increase the prior month makes the gain all the more impressive. Looking at the underlying details, a standout was a surge in transfer payments from the U.S. government (chart).