US DATA: Jan Pers Income +0.3%, PCE +0.2%, Core PCE..

US DATA: Jan Pers Income +0.3%, PCE +0.2%, Core PCE prices +0.2% for
+1.9% YOY. The large gain in prices left real PCE unch. These are weaker
than expected. Pvt wages +$25.5b (mfg & services rose) vs +$29.9b in
Dec, continuing pattern of gains that were boosted by Q3 up-revision to
wages in the GDP data. Proprietors’ income, rents, transfers and income
receipts all rose. Many special factors altered disposable incomes–fedl
pay raises & COLAs added, tax credits expired, and SS adjustment rose.
Still Commerce Dept said this was all usual for Jan. Savings dipped and
the savings rate was 4.6%. Flat real PCE in Jan gives a poor start to
the Q1 GDP path, suggests a slowing in real growth to +2% or less.