- Prior -0.1%
- Consumption 0.5% vs 0.5% exp m/m. Prior 0.3%. Revised to 0.4%
- PCE deflator 0.9% vs 0.9% exp y/y. Prior 0.7%
- 0.0% vs 0.1% exp m/m. Prior 0.0%
- Core PCE 1.1% vs 1.2% exp y/y. Prior 1.1%
- 0.1% vs 0.1% exp m/m. Prior 0.1%
Unchanged on the deflator but a tick down in the core. Income still pretty weak while consumption improves which flies alongside the better consumer spending data we’ve had recently. We’ll have to see whether it’s increased spending on the back of earnings or on increased credit.
Overall it’s pretty much as expected but that core PCE number still stands out in my mind. It’s too early to tell if it’s going to be a real worry but matched with the Q3 GDP data we got last week the US is certainly not out of the woods yet on inflation/deflation worries.
USD/JPY has recovered some back to 103.95 and was fairly muted over the numbers. EUR/USD poked it’s nose above 1.3700 just before and on the release and is back below at 1.3696.
