US October personal spending +0.3% vs +0.3% expected

Author: Adam Button | Category: News

Highlights of the personal income and spending report:

personal spending
  • Prior was +0.2%
  • Personal income 0.0% vs +0.3% expected
  • Prior personal income +0.3%
The spending number is in-line and that suggests the consumer remains healthy but the income side of the equation is soft and that's not a great sign.

Inflation:
  • PCE deflator +1.3% vs +1.4% y/y expected
  • Deflator +0.2% m/m vs +0.3% expected
  • Core PCE +1.6% vs +1.7% y/y expected
  • Core PCE +0.1% vs +0.1% m/m expected
This is going to encourage the Fed to keep rates low for longer. That's good for risk assets globally and a modest USD negative. However at this point, growth expectations are more of a driver than inflation.

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