US consumer spending rises by the most in almost seven years in April

Personal consumption in the US jumped last month by the most in almost seven years.

Personal incomes and spending advanced by 0.4% and 1.0% month-on-month in April, according to the Department of Commerce.

Economists had forecast increases of 0.4% and 0.6%, respectively.

Disposable personal income advanced at a 0.4% month-on-month clip.

The deflator for personal consumption expenditures rose at a 1.1% year-on-year pace in April, up from 0.8% in the month before.

In comparison with the previous month, the headlined PCE price index was 0.3% higher.

The 'core' PCE deflator advanced by 0.2% over the month and 1.6% year-on-year, with the latter the same as in the month before.

Reading for both headline and core PCE were all as expected by the consensus.