Core PCE data y/y
- Prior was +4.7%
- PCE core MoM +0.3% vs +0.3% expected
- Prior MoM +0.2%
- Headline inflation PCE +5.0% vs +5.5% prior
- Deflator MoM +0.1% vs +0.1% prior
Consumer spending and income for November:
- Personal income +0.2% vs +0.2% expected. Prior month +0.4%
- Personal spending -0.2% vs -0.1% expected. Prior month +0.1%
- Real personal spending -0.3% vs +0.0% prior
Under the covers of this report, the Fed might not like seeing services inflation up 0.7% m/m. That's counteracted by a 1.0% decline in goods prices, including -2.3% in durable goods. Powell has expressed worry about core services inflation remaining high and said that's why they plan to hike to 5.00-5.25% and stay there.
The US dollar is a tad softer on the data, perhaps as the market focuses on the softening spending metrics as a forward-looking indicator of a weakening economy.