US DATA: June Personal Income +0.1% (smallest gain since Sep’10),
PCE -0.2%, PCE core prices +0.1% for +1.3% YOY, all already incorporated
into the Q2 GDP report. The Q2 pattern in PCE is now: +0.2% Apr, +0.1%
May, and -0.2% Jun, a declining trend that suggests Q3 will start
slowly. Other info showed June pvt wages -$2.2b (mfg & services fell- so
did govt) vs +$15b in May. Proprietors income and rents fell, while
transfers and income receipts rose. Savings jumped $39b to its highest
since Aug’10, putting the personal savings rate at 5.4%, +0.4pt on the
month. Overall, the report shows the consumer pulled back.