Details for the July 2017 US personal income and spending and PCE data

The US personal income came in higher at 0.4% (vs 0.3% estimate), while the personal spending rose 0.3%. That was lower than the 0.4% estimate. Mixed.

In other details.

  • The Personal income was unrevised last month at 0.0%, but the spending was revised up to 0.2% from 0.1%
  • The real personal spending was lighter this month at 0.2% vs 0.3% estimate. However the prior month was revised higher to 0.2% from 0.0% previously reported.
  • PCE 1.4% vs 1.4 est YoY. Prior was 1.4% (unrevised)
  • MoM PCE rose 0.1% - as expected. Prior 0.0% (unrevised)
  • Core PCE 1.4% YoY (as expected). The prior was higher at 1.5%
  • Core MoM rose 0.1%. That was the estimate (prior unrevised at 0.1%)
  • US savings rate falls to 3.5% from 3.6% in July
  • US wages and salaries rise by 0.5%

With revisions the numbers are as expected. Although wages and salaries are showing back to back 0.5% gains, the PCE inflation data is not all that great. The Core PCE YoY is trading at the lowest since December 2015.