US November personal spending -0.4% vs -0.2% expected

Highlights of the November PCE report:

• Prior personal spending +0.5% (revised to +0.3%)
• Real personal spending -0.4% vs -0.3% expected
• Personal income -1.1% vs. -0.3% expected
• Prior income -0.7% (revised to -0.6%)

Inflation:

• Core PCE deflator MoM 0.0% vs. 0.1% expected
• Core PCE deflator YoY +1.4% vs. +1.4% expected
• PCE deflator MoM 0.0% vs. 0.1% expected
• PCE deflator YoY +1.1% vs. +1.2% expected

This confirms the softness we've seen in retail sales and the drop in income is also worrisome but the market can look forward to those $600 stimulus checks.