CONSUMER SPENDING BEATS EXPECTATIONS, UNEXPECTEDLY GROWS

The March reading of personal income and spending is out, and the report is mixed.

Spending unexpectedly climbed 0.2%. Economists were looking for an unchanged reading.

Personal income kept pace, increasing 0.2%. However, economists were looking for a 0.4% gain.

The savings rate stayed flat at 2.7%.

"We already know from last week’s GDP data that real consumption rose at an impressive annualised rate of 3.2% in the first quarter, so the interest in March’s personal spending and income data will be to see just how sharp the slowdown in spending was at the end of the quarter," said Capital Economics' Paul Dales.

Indeed, income was down from a 1.1% growth rate in February. Spending is down from 0.7%.