US DATA: Aug Pers Income +0.1%, PCE +0.5%, Core PCE prices +0.1% for
+1.6% YOY, about as expected. Pvt wages +$4.7b vs +$9.3b July as
goods-producing payrolls decreased. Transfers and receipts on assets
fell, another reason income was slow. Real disposable income was -0.3%
as a result, a result equaled in Nov’11, Aug’11 and Mar’11 but the
largest drop since Feb. Retail sales data showed people kept spending,
but real PCE was just +0.1% as services spending printed -0.1%. Savings
also suffered from slowing incomes, falling to its lowest level since
Apr and putting the saving rate at 3.7%, its lowest since spring. Real
PCE at +0.1% means the Jul-Aug avg is about 1.5% above Q2, suggesting
additional modest GDP growth.