May personal consumption expenditure highlights
- Prior was -13.6% (revised to -12.6%)
- Personal income -4.2% vs -6.0% expected
- Prior personal income +10.5% (revised to +10.8%)
With the revisions, the picture here remains a stronger-than-expected consumer and government stimulus cheques shore up incomes.
- Real personal spending +8.1% vs +8.7% expected
- Prior real personal spending -13.2% (revised to -12.2%)
- PCE deflator +0.1% vs 0.0% exp m/m
- Deflator y/y +0.5% vs +0.5% exp
- Core deflator y/y +1.0% vs +1.0% exp
The savings rate data has been extreme since the pandemic. Pre-pandemic it was around 8% then jumped to 12.6% in March, to 32.2% in April and 23.2% in May.