Personal Income and Outlays
April's Personal Income and Outlays data kicked off today’s activities at 8:30 AM ET. The Commerce Department announced a 10.5% jump in income and a 13.6% decline in spending. The income reading was considerably higher than expected, but that figure is believed to be skewed by the many lower paid workers that are currently out of work. A large decline in spending does not come as a surprise due to the pandemic and tens of millions of jobs lost during it. However, it is the largest monthly decline on record. Since consumer spending makes up over two-thirds of the U.S. economy and the drop was slightly bigger than forecasts, we can consider the news favorable for mortgage rates.