October 2016 US personal income, spending and PCE data report 30 November 2016

  • Prior 0.3%. Revised to 0.4%

  • Spending 0.3% vs 0.5% exp m/m. Prior 0.5%. Revised to 0.7%
  • Real spending 0.1% vs 0.3% exp. Prior 0.3%. Revised to 0.5%
  • Core PCE 1.7% vs 1.7% exp y/y. Prior 1.7%
  • 0.1% vs 0.1% exp m/m. Prior 0.1%
  • PCE 1.4% vs 1.2% prior y/y
  • 0.2% vs 0.2% prior m/m

A mixed report. Incomes up but spending slower, and it looks worse vs the revisions. Core PCE sitting steady. The Fed would have liked to have seen that tick up nearer 2.0% going into the FOMC.

Wages and salaries came in at 0.5% matching Sep. Spending in durables was lower but there was a pick up in non-durables.

US core PCE y/y