The Commerce Department reported on Friday that consumer spending in the U.S. tumbled 13.6 percent m-o-m in April after a revised 6.9 percent m-o-m plunge in March (originally, a 7.5 percent m-o-m decline). That was the largest monthly decline in personal spending on record. Economists had forecast the reading to show a 12.6 percent m-o-m drop.

Meanwhile, consumer income surged 10.5 percent m-o-m in April, following a revised 2.2 percent m-o-m drop in the previous month (originally, a 2.0 percent m-o-m fall). That was the biggest monthly rise ever in personal income. Economists had forecast a 6.5 percent m-o-m decline.

The April surge in personal income primarily reflected an increase in government social benefits to persons as payments were made to individuals from federal economic recovery programs in response to the COVID-19 pandemic.

The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, fell 0.4 percent m-o-m in April, following an unrevised 0.1 percent m-o-m decrease in the prior month. Economists had projected the index would drop 0.3 percent m-o-m.

In the 12 months through April, the core PCE increased 1.0 percent, following an unrevised 1.7 percent growth in the 12 months through March. Economists had forecast an advance of 1.1 percent y-o-y.