US February PCE core +1.4% y/y vs +1.5% expected

US February personal income and spending report highlights

• Prior was +1.5% y/y
• PCE core MoM +0.1% vs +0.1% expected
• Prior MoM +0.3% (revised to +0.2%)
• Deflator YoY +1.6% vs +1.5% expected
• Prior deflator YoY +1.5% (revised to +1.4%)
• Deflator MoM +0.2% vs +0.3% expected
• Prior MoM deflator +0.3%

Consumers spending and income for February:

• Personal income -7.1% vs -7.2% expected. Prior month +10.0% (revised to +10.1%)
• Personal spending -1.0% vs -0.8% expected. Prior month +2.4% (revised to +3.4%)
• Real personal spending -1.2% vs -1.0% expected. Prior month +2.0% (revised to +3.0%)

The revisions to January spending likely reflect stimulus checks but highlight the upside from US consumers all the same. Overall, the inflation picture is light but that will change dramatically as the y/y comps get much easier.