Market Weekly: May 24 – 30 2020


Personal spending in the US plunged 13.6 percent month-over-month in April of 2020

Prior Month downwardly revised 6.9 percent fall in March and worse than market forecasts of a 12.6 percent drop.
It is the biggest decline on record as COVID-19 lockdown measures led to stores closures and restrain Americans from shopping.

Personal income +10.5% vs -6.0% expected
Prior personal income -2.2%

PCE deflator m/m -0.5% vs -0.6% expected
PCE deflator y/y +0.5% vs +0.5% expected
PCE core deflator m/m -0.4% vs -0.3% expected
PCE core deflator y/y +1.0% vs +1.1% expected

Note personal income number higher due to the $600 top up to unemployment was higher than many min wages.

Real spending decreased 13.2 percent, led by a decrease in food and beverages and spending for health care as well as food services and accommodations