US DATA: May Personal Income +0.3%, PCE flat (worst since -0.6% in
Sept ’09), PCE core prices +0.3% for +1.2% YOY. Spending was flat and
prices a little higher than expected, a bad combination. Real PCE -0.1%
vs -0.1% in Apr, raising the possibility that Q2 consumption will
decline. Pvt wages +$14.1b vs +$26.4b in Apr as services pay slowed.
Supplements, rents, income receipts and transfers gained but
proprietors’ income -$1.7b as farm income dropped and nonfarm -$0.4b.
Savings rebounded to largest since Jan’11, leaving savings rate at 5.0%.
The data suggest a more cautious consumer. Annual revs are due Aug 2.