US DATA: Dec personal income +0.4%, PCE +0.7%, core PCE prices flat
for +0.7% YOY, slightly better than expected but already incorp into Q4
GDP. Higher spending seems to stem from lower savings, as savings rate
reached 5.3%, a low since Aug’09. Pvt wages +$15.5b vs +$5.9b Nov, as
mfg payrolls turned positive. Supplements, proprietors’ income, rents,
income on assets, and transfers all gained, showing positive momentum
going forward. Spending was boosted by +1% real durables vs -0.2% in
Nov, as auto and rennovation spending gained. PCE core prices are now
flat in 5 of the last 6 mos – a sign of no significant price pressures.