US Jan personal spending +0.2% m/m vs +0.2% exp

From the PCE report:

• Prior reading was +0.2% (revised to +0.1%)
• Personal income -3.6% vs -2.4% exp
• PCE deflator +1.2% y/y, as expected
• PCE core +0.1% vs +0.2% exp

Severe drop in personal income, although it comes after a 2.6% rise in January. I suspect it may be due to delayed tax returns and tax hikes but that should have been factored into the forecasts.