Consumer spending in April declined while personal income increased, according to a new U.S. Commerce Department released Friday
Economic Watch: Consumer Spending, Sentiment Decline
The 0.1% drop in personal consumption expenditures follows an upwardly revised 1% increase during March, which was the largest gain since August 2009 and is the first decline in a year.
The 0.1% drop in personal consumption expenditures follows an upwardly revised 1% increase during March, which was the largest gain since August 2009 and is the first decline in a year.
Purchases of motor vehicles and parts accounted for most of the decrease in April and for most of the increase in March, according to the department. Purchases of nondurable goods decreased 0.3% in April, in contrast to an increase of 0.5% in March while purchases of services decreased 0.2%, in contrast to an increase of 0.5%. Part of this decline is service was reflected in less spending on utilities, due to better weather in May compared to the month before.
Meantime, personal incomes gained 0.3% in April following a 0.5% increase in March while personal savings increased 4% after being downwardly revised to 3.6% in March.
Year-over-year, personal income is up 3.6% and personal spending is 4.3% higher.
“After two back-to-back months of robust spending, consumers have pulled back in April. Despite hopes of pent-up demand driving consumption and overall growth through the second quarter and the second half, it appears after just two months, any lingering demand for goods left over from the winter months at the start of the year has since been satisfied,” said Lindsey Piegza, chief economist at the investment firm Sterne Agee. “Going forward, in order to maintain momentum in spending, there must be sustainable job and income growth. Meaning it will take more than a hefty increase in the jobs number, but an increase in the quality of jobs as well to create wage pressures, which at the moment remain virtually nonexistent,”
She added that employers continue to seek out flexible, low-cost labor with part-time and temporary employees, translating into positive job creation but minimal income growth.
Consumer Sentiment
A new reading shows consumer sentiment in the country declined this month.
The Thomson Reuters/University of Michigan's final May reading on the overall index of consumer sentiment came in at 81.9, down from 84.1 the month before.
The survey revealed consumers are concerned about dismal prospects for wage growth along with declines in inflation-adjusted incomes and standards of living in the years ahead.
These two latest reports follow numbers released earlier this week showing the nation’s gross domestic product declined at an annual rate of 1% in the first quarter of the year, but many analysts are still forecasting total economic growth this year of around 3%.
More Fleet Management

ATA’s Spear Warns Fuel Prices, Trade Policy, and Global Conflict Could Stall Trucking Recovery
Speaking at the TMC Annual Meeting in Nashville, ATA President Chris Spear said trucking faces mounting pressure from rising fuel prices, geopolitical instability, and uncertainty around trade policy.
Read More →
New Entrants, Chameleon Carriers, and Safety: Is It Too Easy to Start a Trucking Company?
More than 100,000 new trucking companies enter the industry each year, but regulators manage to audit only a fraction of them. That churn creates opportunities for inexperienced startups — and for “chameleon carriers” that shut down after safety violations and reappear under new identities. Read more from Deborah Lockridge in this commentary.
Read More →
Fleet Managers Invited to Apply for Exclusive HDT Exchange Event
HDTX is an intimate event that connects heavy-duty trucking fleet managers with industry suppliers through small-group discussions, educational sessions, and structured one-on-one meetings.
Read More →
DAT Launches iPhone Widget to Help Owner-Operators Find Loads Faster
New DAT One feature shows top-paying loads directly on an iPhone’s home screen, helping carriers react faster to spot-market opportunities.
Read More →
Optimal Dynamics Launches AI System to Help Carriers Choose Better Freight
Optimal Dynamics says its new Scale platform uses AI agents and optimization to help carriers find and secure freight that improves network balance and profitability.
Read More →
DAT: Flatbed Demand Climbs as Van and Reefer Rates Soften
DAT Freight & Analytics data shows tightening flatbed capacity, easing produce markets, and softening van and reefer rates.
Read More →
Run on Less “Messy Middle” Data Shows Multiple Paths Forward for Truck Powertrains [Watch]
NACFE's Run on Less - Messy Middle project demonstrates the power of data in helping to guide the future of alternative fuels and powertrains for heavy-duty trucks.
Read More →
Federal Court Lets NYC Congestion Pricing Continue
A federal court ruling allows New York City’s congestion pricing program to continue, leaving truck tolls in place for fleets delivering into Manhattan.
Read More →
Fontaine Modification Launches Real-Time Truck Modification Tracking Portal
Fontaine Modification has introduced a new customer portal designed to give fleets real-time visibility into the truck modification process, addressing one of the most common questions fleet managers face: “Where’s my truck?”
Read More →
FTR: Trucking Conditions Index Climbs to Highest Level Since 2022
Strong freight rates, rising volumes and tighter capacity push trucking conditions higher, though diesel prices could temper gains in the near term, FTR cautions.
Read More →
