- UAE oil giant ADNOC swoops on German chemicals firm Covestro
- Eurozone inflation falls under 2% for first time since 2021
- Coldplay ticket scalping fiasco sparks backlash in India
- Droughts drive Spanish boom in pistachio farming
- Tokyo recovers some losses to lead Asian markets higher
- Rural schools empty in North Macedonia due to exodus
- US dockworkers launch strike after labor contract expires
- Thousands evacuated as Super Typhoon Krathon approaches Taiwan
- Kenya airport whistleblower fears for his life
- Sheinbaum to take office as Mexico's first woman president
- Scientists fear underfunded Argentina research on verge of collapse
- US port officials gird for strike despite last-minute bargaining
- With 118 dead from Hurricane Helene, Biden defends US government response
- Breeder who tried to create enormous trophy sheep jailed in US
- Qatar Airways seeking 25% stake in Virgin Australia
- US port officials gird for strike as labor talks stay stuck
- As toll crosses 100, Trump puts Hurricane Helene at election center stage
- US Fed Chair sees 'further disinflation' in economy
- Epic Games sues Google and Samsung over app store
- Officials see no shortages from likely US port strike
- UK families of Gaza hostages warn Lebanon attack 'takes focus away'
- Shares in Stellantis, Aston Martin skid on profit warnings
- Dali prints found in London garage sold at auction
- ECB chief backs bank mergers amid UniCredit, Commerzbank talk
- China stocks soar on stimulus, but US and Europe retreat
- 100 dead in storm Helene damage, flooding across US southeast
- China stocks soar on stimulus, Europe slides on automaker woes
- German antitrust watchdog steps up monitoring of Microsoft
- Nepal's urban poor count cost of 'nightmare' floods
- E.Guinea, Gabon clash at ICJ over oil-rich islands
- New blow for UK's Starmer as growth data disappoints
- China's top banks to tweak mortgage rates to boost housing market
- Muslim women break taboos navigating east London's waterways
- Nepal dam-building spree powers electric vehicle boom
- More than 60 dead from storm Helene as rescue, cleanup efforts grow
- Dozens missing, 9 dead in migrant boat wreck off Spanish Canaries
- Death toll from Hurricane John hits eight in Mexico
- Storm Helene's toll rises as rescue and cleanup efforts gain pace
- SpaceX launches mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding as cleanup begins
- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
Americans' spending, incomes grew in March amid high prices: govt
As their wages rose last month, Americans channeled more dollars towards services even as prices continued ticking higher, government data released Friday said.
The Commerce Department reported personal consumption expenditures (PCE) climbed 1.1 percent in March, almost twice what analysts expected, while incomes saw a forecast-beating 0.5 percent increase, both signs of continued resilience in the economy.
The data also confirmed the potency of the continued inflation wave hitting the world's largest economy, as prices rose 0.9 percent in the month, much more than the increase seen in February.
Compared to a year ago, they were up 6.6 percent, with energy prices shooting up 33.9 percent after Russia invaded Ukraine in February. Food prices jumped 9.2 percent.
PCE is the Federal Reserve's prefered price gauge and the strong demand coupled with high inflation will likely bolster the case for the central bank to raise rates by a half-percentage point when they meet next week, with more hikes to come in future months.
Most of March's spending went to services, which grew $114.6 billion, as consumers paid for international travel, accommodation and food services, among a wide range of business, the report said.
Goods outlays rose $70.4 billion, according to the data, as Americans spent more for gasoline but cut spending on durable goods, such as motor vehicles and parts, where prices have risen dramatically amid a global shortage of semiconductors.
Income rose due to a combination of increases in wages, farm revenues caused by higher food prices and a rise in interest payments.
While prices accelerated overall last month, "core" prices, which exclude volatile food and energy costs, showed signs of easing.
They were 5.2 percent higher compared to March 2021, slightly less than the annual increase seen in February. On a month-to-month basis, they rose 0.3 percent, the same as the month prior.
C.Smith--CPN