US July personal spending +1.9% vs +1.6% expected

Highlights of the July PCE report

• Prior spending +5.6%
• Personal income +0.4 vs -0.3% expected
• Prior personal income -1.1%

Inflation data:

• PCE deflator m/m +0.3% vs +0.4% expected
• PCE deflator y/y +1.0% vs +0.8% prior
• Core PCE m/m +0.3% vs +0.5% expected
• Core PCE y/y 1.3% vs +1.2% expected

The income and spending numbers are a great sign for spending going forward. The US dollar is a bit higher as this competes with some soft trade numbers.