U.S. Personal Income Rose 0.5% as Core PCE Rose 0.3% in May

US Personal income rose 0.5% month-over-month in May as rising prices hover just under the fastest rate in 40 years. Personal spending rose 0.2% month-over-month. Rising energy prices continue to be a key factor driving inflation and global oil prices remain elevated. The core PCE price index dropped year-over-year to 4.7% from 4.9% in April. The PCE price index is closely watched since it is the preferred inflation measure of the Federal Reserve, which has begun raising interest rates for … Continue reading “U.S. Personal Income Rose 0.5% as Core PCE Rose 0.3% in May”

U.S. Savings Rate Falls to Lowest Since 2008 with Core PCE at+4.9% in April

The Fed’s favorite measure of inflation, US core PCE came in at 4.9% YoY as expected, down from 5.2% YoY the previous month and inspiring those calling for peak inflation. The inflation numbers are coming off levels not seen for 40 years. Rising energy prices continue to be a key factor driving inflation and global oil and natural gas prices have been moving steadily higher following Russia’s invasion of Ukraine, which could disrupt supply. Personal income rose 0.4% but personal … Continue reading “U.S. Savings Rate Falls to Lowest Since 2008 with Core PCE at+4.9% in April”

U.S. Personal Income Flat While Core PCE Rose +5.2% in January, largest increase since April 1983

US Personal income was flat month-over-month in January as rising prices increased at their fastest rate in 40 years. Rising energy prices continue to be a key factor driving inflation and global oil prices have been moving steadily higher in recent days following Russia’s invasion of Ukraine, which could disrupt supply. The core PCE price index gained 5.2% annually, the largest increase since April 1983. The PCE price index is closely watched since it is the preferred inflation measure of … Continue reading “U.S. Personal Income Flat While Core PCE Rose +5.2% in January, largest increase since April 1983”

U.S. Personal Income Rose While Core PCE Rose Less Than Expected in June

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).

U.S. Personal Income Fell 2% as Government Social Benefits Fell 11.8%

US Personal income decreased 2.0% month-over-month in May. The fall was driven by an 11.8% decline in government social benefits. The Core-PCE Price Index, which excludes food and energy, rose 0.5% and was up 3.4% year-over-year (versus 3.1% in April).

US Personal Income and Spending Not As Weak As Feared

US Personal Income and Spending report for December came in better than feared Friday. Personal income increased 0.6% m/m in December higher than the consensus 0.1% and rebounding from a revised 1.3 percent slump in November. Personal spending declined 0.2% versus consensus -0.5%. Investors came away with a sense of relief.