28 Apr '23 at 8:02 am #57552
No surprises in the March Personal income and Spending Report.
Personal income increased 0.3% month-over-month (consensus +0.2%) and personal spending was flat (consensus -0.1%). The PCE Price Index was up 0.1% (consensus +0.1%) and the core PCE Price Index, which excludes food and energy, was up 0.3% (consensus +0.3%).
The key takeaway from the report is that the core PCE Price Index, the Fed’s preferred inflation gauge, held fairly steady at persistently high levels, checking in at 4.6% year-over-year versus 4.7% in February. The stickiness of that component should keep the Fed sticking to its rate-hike ways.