Americans pulled back on their spending in April amid tariff rollout
American consumers reined in their spending in April following a tariff-fueled buying binge the month before, according to new data released Friday that also showed inflation cooled off again.
Friday's report from the Commerce Department showed that consumer spending rose 0.2% last month, a weaker-than-anticipated reading but a notable retreat from March's 0.7% surge when Americans front-loaded purchases — notably new cars — ahead of potential price increases from President Donald Trump's tariffs.
The latest data also showed inflation moving closer to the Federal Reserve's target of 2%, almost where it was before the tariffs rollout.
The Personal Consumption Expenditures price index was 2.1% for the 12 months ended in April, a slowdown from the 2.3% annual gain in March. On a monthly basis, prices rose 0.1%, a slight acceleration after holding steady in March.
Economists were expecting the PCE price index to rise 0.2% from March and to ease to an annual rate of 2.2%, and for spending to slow to 0.4%, according to FactSet.
This story is developing and will be updated.
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Carbon Capture Efforts Slow as Trump Targets Clean Energy Projects
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'Moves like this risk ceding America's energy and technological leadership to other nations,' the coalition added. The tax credit for carbon capture remains, for now, but some analysts say it's not enough to help the industry take off. The $85 per metric ton tax credit 'is and continues to be insufficient to justify widespread deployment of post-combustion carbon capture', Rohan Dighe, an analyst at Wood Mackenzie, told the Financial Times. The limitations to transferability of the credits after 2027 will also kill many small projects, Brenna Casey, a carbon capture associate at BloombergNEF, told FT. The carbon capture market could soon reach a point in which only the oil majors could afford to be active in it. But even majors such as ExxonMobil have conditioned their investments in low-carbon energy solutions on favorable policy and regulation. 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The key dynamics shaping a busy month of primaries: From the Politics Desk
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The next three weeks will bring primaries in the three most closely watched races of 2025. Here are the key dynamics to watch: New Jersey: Both parties will nominate gubernatorial candidates in the Garden State on June 10. Barring a complete shock, this will serve as a coronation for Republican Jack Ciattarelli, who was already leading by wide margins in the polls when President Donald Trump endorsed him several weeks ago. The Democratic contest isn't as clear-cut, but there is a favorite: Rep. Mikie Sherrill has separated herself from the six-candidate field in the most recent polling and enjoys strong backing from the state's still-powerful (though probably not as much as before) county political machines. The combination of Trump's surprising strength in New Jersey last year and Gov. Phil Murphy's unexpectedly close re-election in 2021 has Democratic leaders apprehensive about their November prospects. 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Associated Press
22 minutes ago
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New Mexico appeals court rejects lawsuit against oil and gas regulators
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