Highlights of the Fed's personal consumption expenditure report
- Prior was 3.4%
- Headline PCE 4.0% y/y vs +3.9% prior (revised to 4.0%)
- PCE core MoM +0.4% vs +0.6% expected
- Prior MoM +0.5%
- Deflator MoM +0.5% vs +0.4% prior
- Full report
Consumer spending and income for June:
- Personal income +0.1% vs -0.3% expected. Prior month -2.0%
- Personal spending +1.0% vs +0.7% expected. Prior month -0.1%
- Real personal spending +0.5% vs -0.6% prior
This is another sigh of relief for markets. I think the flat headline is important as well. We've likely seen the highs now and we can already see the goods inflation and energy inflation rates are turning lower y/y:
- Goods +5.2% vs +5.4% prior
- Durable goods +7.2% vs +6.9% prior
- Services +3.3% vs +3.2% prior
- Energy +24.2% vs +27.3% prior
- Food +0.9% vs +0.7% prior
