Economy

Google Ad

US Personal income was up 0.1% month-over-month in June with a 0.7% increase in compensation helping to offset a 2.0% decline in personal current transfer receipts. The Core-PCE Price Index, which excludes food and energy, increased 0.4% and was up 3.5% year-over-year (versus 3.4% in May).

US Miss

The market continues to hit new highs in the stock markets and long-term bond yields have fallen after last month's run up on inflation fears, which the Fed dismisses as transitory. There is also a low base effect from last year weighing as the coronavirus pandemic dented economic activity and lowered prices. The market is trading on the premise that the US is at or close to, peak inflation. The shock will come if better inflation news in coming months is not coming.

Highlights

  • Personal spending increased 1.0% month-over-month in June (consensus 0.7%).

United States Personal Spending

  • Personal income was up 0.1% month-over-month (consensus -0.6%), with a 0.7% increase in compensation helping to offset a 2.0% decline in personal current transfer receipts.

United States Personal Income

  • The PCE Price Index was up 0.5% (consensus 0.7%) month-over-month and held steady at 4.0% year-over-year (versus 4.0% in May).
  • The annual rate was the fastest since July 2008, reflecting increases in both goods and services. Energy prices were up 24.2 percent while food prices increased 0.9 percent.

United States Personal Consumption Expenditure Price Index

  • The Core-PCE Price Index, which excludes food and energy, rose 0.4% month-over-month, easing from a 0.5% rise in May and less than consensus 0.6%.
  • Core PCE was up 3.5% year-over-year (versus 3.4% in April).

United States Core Personal Consumption Expenditure Price Index

  • Real personal spending increased 9.2% year-over-year..

United States Consumer Spending

  • The personal savings rate as a percentage of disposable personal income dropped to 9.4% from 10.3% in May.

United States Personal Savings Rate

 Source: US Bureau of Economics

From The TradersCommunity News Desk

Log in to comment
Discuss this article in the forums (0 replies).