US personal spending, income and PCE data for December 2019
- Personal spending 0.3% versus 0.3% estimate. Last month unrevised at 0.4%
- Personal income 0.2% versus 0.3% estimate. Prior month revised down to 0.4% from 0.5%
- Real personal spending 0.1% versus 0.1% estimate. Last month 0.3%
- PCE core deflator MOM 0.2% versus 0.1% estimate. Prior month 0.1%
- PCE core deflator YoY 1.6% versus 1.6% estimate. Prior month revised down to 1.5% from 1.6%
- PCE deflator MOM 0.3% versus 0.2%. Prior month revised down to 0.1% from 0.2%
- PCE deflator YoY 1.6% versus 1.6% estimate. Prior month revised down to 1.4% from 1.5%
The personal spending came in as expected but a little lower than the prior month at 0.3% versus 0.4%. However core PCE prices did increase little more than expected at 0.2% versus 0.1%. The year on year measure increased to 1.6% from 1.5% (revised from 1.6%). The favored inflation measures for the Fed still stand below the 2.0% target. The inflation adjusted spending for the month slowed to 0.1% from 0.3%. That's not that great.
Income growth remains fairly stagnant at 0.2%. According to the Commerce Department the decline reflected a decrease in the farm subsidies.
Yesterday the estimate for fourth-quarter GDP showed that consumption fell to 1.8% and was weaker than expectations of 2.1%. This data supports that slowing of consumer spending. Running counter to that argument were Amazon's data after the close yesterday which showed higher than expected revenues and much better earnings.
The US dollar has moved lower after the report.
