August data. Prior Personal spending is revised higher to +0.4% vs +0.3%
The August personal spending and income data show spending came in unchanged - a little weaker than the +0.1% estimate. However, the prior month was revised a touch higher to +0.4% from +0.3% previously.
As far as income, it rose by 0.2% in the currently month after a rise of +0.4% in July (no revision).
The gain in income was the lowest since February. Wages increased by 0.1%. This was lower than the 0.5% in July.
Real personal spending which adjusts for inflation and is used in the calculation for GDP, came in at -0.1% vs a +0.3% increase in the prior month. The fall was the largest since January when it also fell -0.1% (it is also only the 2nd month where real spending fell going back to early 2014 - see chart above).
Given the weakness, the market will expect that the GDP live forecasts for the 3Q would continue to show a decline. The last GDPNow forecast from the Atlanta Fed came in at 2.8% - the lowest reading in the 3Q series. There will be a new estimate later this morning.
The US dollar is showiing some weakness after the report with the EURUSD moving higher and away from the 200 day MA. The USDJPY, USDCHF are also lower. The USDCAD is seeing the largest move as it benefits from stronger Canada GDP for July as well.