The Commerce Department reported on Friday that consumer spending in the U.S. rose 4.2 percent m-o-m in March after an unrevised 1.0 percent m-o-m drop in February. This marked the biggest monthly rise in consumer spending since June 2020. Economists had forecast the reading to show a 4.1 percent m-o-m surge.

Meanwhile, consumer income surged 21.1 percent m-o-m in March, following a revised 7.0 percent m-o-m tumble in the previous month (originally a 7.1 percent m-o-m plunge). This was the largest monthly increase in consumer income on record. Economists had forecast a 20.3 percent m-o-m climb.

The March jump in personal income largely reflected an increase in government social benefits.

The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, increased 0.4 percent m-o-m in March, following an unrevised 0.1 percent m-o-m advance in February. Economists had projected the index would increase 0.3 percent m-o-m.

In the 12 months through March, the core PCE rose 1.8 percent, accelerating from an unrevised 1.4 percent in the 12 months through February. Economists had forecast an advance of 1.8 percent y-o-y.