The Commerce Department reported on Thursday that consumer spending in the U.S. tumbled 7.5 percent m-o-m in March after a 0.2 percent m-o-m increase in February. That was the largest monthly decline in personal spending on record. Economists had forecast the reading to show a 5.0 percent m-o-m decrease.

Meanwhile, consumer income fell 2.0 percent m-o-m in March, following a 0.6 percent m-o-m advance in the previous month. That was the biggest monthly decrease in personal income since January 2013. Economists had forecast a 1.5 percent m-o-m drop.

The March decrease in personal income and spending was, in part, due to the response to the spread of COVID-19, as governments issued "stay-at-home" orders. This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending, the report said.

The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, fell 0.1 percent m-o-m in March, following an unrevised 0.2 percent m-o-m advance in the prior month. Economists had projected the index would edge down 0.1 percent m-o-m.

In the 12 months through March, the core PCE increased 1.7 percent, following an unrevised 1.8 percent growth in the 12 months through February. Economists had forecast an advance of 1.6 percent y-o-y.