While the Commerce Department released a report showing another modest increase in personal income in April, the report unexpectedly showed that personal spending came in unchanged compared to the previous month.
The report showed that personal income increased by 0.4% in April, matching the upwardly revised increase seen in the previous month. Economists had expected income to increase by 0.4% compared to the 0.3 percent growth originally reported for March.
On the other hand, the Commerce Department also said that personal spending came in unchanged in April after surging up by 0.6% in March. The lack of growth came as a surprise to economists, who had expected spending to increase by 0.3 percent.
The results of the Institute for Supply Management-Chicago's business survey for May are scheduled to be released at 9:45 AM ET. Economists expect the business barometer index based on the survey to come in at 60.
In April, the manufacturing purchasing managers' index, reflecting conditions in the Mid-western region, rose to 63.8 in April from 58.8. The index climbed to its highest level since April 2005. Economists had expected a more modest improvement to 60. The new orders index rose by 3.4 points to 65.2 and the order backlogs index climbed by 7 points to 61.4. On a more optimistic note, the employment index rose 4 points to 57.2. However, the inventories index declined 2.3 points to 52.4.
The Reuters/University of Michigan's final report on the consumer sentiment index for May is scheduled to be released at 9:55 AM ET. The consumer sentiment index is expected to be revised slightly downwards to 73.2 from the mid-month of reading of 73.3.
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