Personal spending rose by 0.5% in April, with energy expenditures surging by $28.8 billion and service consumption leading the growth with an increase of $67.2 billion.

(1) In April, U.S. personal spending grew by 0.5% month-on-month, increasing by $111.1 billion. This marks a slowdown compared to the 1% increase (after revision) in March and is in line with market expectations. (2) Goods spending increased by $44 billion, primarily driven by a surge in energy prices due to Middle East conflicts. Spending on gasoline and other energy goods spiked by $28.8 billion. Spending on food and beverages was $9.5 billion, other non-durable goods $8.2 billion, recreational goods and vehicles $8.1 billion, while car spending decreased by $9.2 billion. (3) Services spending rose by $67.2 billion, with housing and utilities ($22.7 billion), recreational services ($12.1 billion), food services and accommodation ($11.3 billion), and final expenditures of nonprofit institutions ($9.9 billion) being the four main driving factors.