Americans' incomes -- the fuel for future spending -- jumped by 0.5 percent, following two straight months of declines.

How do they arrive at these numbers?  None of my friends are seeing income increases.

Oh, wait, here's where it's coming from: The improvement in April was due to tax cuts and benefit payments flowing from President Barack Obama's stimulus package, the government noted. Wages and salaries, however, were flat in April. (It just occurred to me! That money, that tax money, that was our money in the first place.  Not the government's money.  They took it from me.  So now, when we have less taxes withheld, that counts as increased income?)

Hmmm...  I really appreciate the use of the word "flowing". Now I understand now why there's an extra can of Tabasco^® flavored SPAM^® in the pantry.  Normally, we cannot afford such luxuries when benefits and tax cuts are not "flowing".

The growth in incomes -- the most since May 2008 -- surprised economists. They were forecasting a 0.2 percent decline.
I'm glad the economists are surprised.  I am shocked to know my income has grown 0.5% last month.  It sure doesn't feel like it's grown 0.5%.

Updated:

Income and Spending

REAL spending fell .2% as the headline PCE rose .1%. The core PCE rose .3% and the y/o/y gain rose to the highest since Nov at 1.9%.

Personal Consumption Expenditures = PCE

More on Consumption in April