Details of the June 2015 US personal income spending and PCE data report 3 August 2015

  • Prior 0.5%. Revised to 0.4%
  • Spending 0.2% vs 0.2% exp m/m. Prior 0.9%. Revised to 0.7%
  • Real spending 0.0% vs 0.0% exp m/m. Prior 0.6%. Revised to 0.45
  • Core PCE 1.3% vs 1.2% exp y/y. Prior 1.2%. Revised to 1.3%
  • 0.1% v s0.1% exp m/m. Prior 0.1%
  • PCE 0.3% vs 0.2% exp y/y. Prior 0.2%
  • 0.2% vs 0.2% exp m/m. Prior 0.3%

On the face of it there's nothing special here bar the uptick in core PCE y/y. The lower revisions take some shine of the report

The report gets worse as you duck into the details. Wages and salaries only rose 0.2% vs 0.4% prior. Disposable income rose 0.5% vs 0.4% prior and a lot of that is likely to be from the effects of the oil price on fuel costs

Spending on durables fell 1.3% vs +1.1% in May

There's been no real reaction in the dollar as the numbers were part of the Q2 data we got last week, so they're merely just a closer look into that data. The PCE is something the Fed watches closely for inflation and the core number, while not great, isn't falling, so that will be some comfort

US personal income & spending m/m