Combination of market graph and market list data
Markets

US PCE Deflator YoY 0.4% vs. +0.4% est. Core 1.3% vs. 1.3% est

MoM for November 0.0% vs. 0.1% est. Core MoM 0.1% vs. 0.1%. Personal spending and Personal income rose by 0.3% each.

US PCE deflator data came in largely as expected. The YoY measures for the headline and the more relevant core were as exected at +0.4% and 1.3% respectively. The Fed is targeting an inflation rate of 2.0%. Both measures - needless to say - have a ways to go.

Regarding the MoM the headline change for November was less than expected at 0.0% vs.0.1% estimated. The core rose by the expected 0.1%. Once again, not what that Fed wants to see. The PCE has not been at 2% since April 2012.

For personal spending and income for the month of November, Personal income increased by 0.3% for the month vs 0.2% est. while personal spending increased by 0.3% which was the estimate.

The increase in income of 0.3% comes after a 0.4% rise in November. Wages and Salaries increased by 0.5% which came after a 0.6% gain in October. That is good news for future inflation but the rise is not being reflected in the overall PCE data yet.

Spending was helped by a better employment picture, lower gasoline prices and rising home prices (although existing home sales were horrible yesterday).

The savings rate declined to 5.5% from 5.6%. The 5.6% reading last month was the highest in 3-years.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos