INSTANT VIEW: U.S. personal spending rises in April

NEW YORK (Reuters) - Personal spending rose by 0.2 percent in April as forecast and a key measure of inflation moderated, government data on Friday showed.

KEY POINTS: * Personal spending, under scrutiny as a barometer of how consumers are faring as the U.S. economy cools, had risen by 0.4 percent the previous month. * The Commerce Department said that personal income was up 0.2 percent in April, also matching forecasts, following an upwardly revised 0.4 percent increase in March. * This was previously reported as a 0.3 percent rise. But adjusted for inflation, income stagnated in April for the second straight month. * The overall personal consumption expenditures price index was up 0.2 percent in April from a 0.3 percent increase the month before, the Commerce Department said.

COMMENTS:

SCOTT BROWN, CHIEF ECONOMIST, RAYMOND JAMES & ASSOCIATES, ST

PETERSBURG, FLORIDA:

"The inflation data is pretty mild. Some of that I think reflects seasonal patterns. Treasury prices are up a little bit. The numbers were not quite as bad as they could have been. Core PCE is important because the Fed is still looking for evidence that higher food and energy prices are feeding through

to core inflation at the consumer level. There is not that much evidence yet. (But) the Fed certainly will not be cutting rates any time soon."

RICHARD DEKASER, CHIEF ECONOMIST, NATIONAL CITY CORP.,

CLEVELAND:

"In summary, consumer spending is slowing due to a combination of factors -- slowing income growth, higher energy prices and a greater propensity to save. The slowing income gain is due to a weakening job market."

"We have a challenged consumer, but we have help on the way with the refund checks which will be significant in the summer months. We are going to have to see whether we see that happen in the upcoming retail sales numbers."

"I do see an air pocket after the refund checks are spent. What makes me optimistic is that it buys us some time. The housing correction will be further along and less of a drag on growth."

JOHN CANAVAN, ANALYST, STONE & MCCARTHY RESEARCH ASSOCIATES,

PRINCETON, NEW JERSEY:

"There was nothing particularly surprising. The numbers overall were near enough to expectations that they will do little to change things."

MICHAEL WOOLFOLK, SENIOR CURRENCY STRATEGIST, BANK OF NEW YORK