- Previous was +2.6%
- Core Personal Spending +0.2% MoM vs. +0.2% Expected (Unrounded +0.161%)
- Previous M/M +0.2%
- Core PCE inflation rose to +2.5% YoY vs. +2.6% expected (+2.5%)
- Deflator +0.2% MoM vs. +0.2% Expected (previous was +0.1%)
- Unrounded m/m +0.155%
Consumer Spending and Income for July:
- Personal income +0.3% vs. +0.2% expected. Previous month +0.2%
- Personal spending rose 0.5% vs. 0.5% expected. The previous month rose 0.3%
- Real personal spending rose +0.4% vs. +0.2% previously
These numbers are a bit cautious, and the US dollar fell on two fronts, but the moves were small. Overall, this report shows continued progress in inflation, which is a green light for the Fed to cut interest rates. The probability of a 50 basis point rate cut is 30%, slightly lower than yesterday, but it will depend on Friday’s nonfarm payrolls report.
This article was written by Adam Bouton on www.forexlive.com.
Comments are closed, but trackbacks and pingbacks are open.