1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

US personal income and spending - Nomura

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Guatemala) - Analysts at Nomura noted that personal income increased by 0.3% m-o-m in November, above market expectations but below our forecast (Nomura: 0.4%, Consensus: 0.2%).

    Key Quotes:

    "Personal spending increased by 0.3% m-o-m in November following a revised flat reading in October (previously reported as +0.1% m-o-m). Personal spending rebounded on stronger goods spending while service spending lagged behind.

    A bulk of the weakness in service spending came from energy services, which took a tumble as the weather has been unseasonably warm across large swaths of the country.

    On inflation, the PCE deflator was unchanged over the month (0.4% y-o-y) in November, below expectations but right in line with our expectations (Nomura: 0.0% m-o-m, Consensus: 0.1% m-o-m). Core PCE increased by 0.1% m-o-m (unrounded: 0.0114%), in line with expectations (Nomura: 0.0110% m-o-m, Consensus: 0.1% m-o-m), which left the year-over-year metric at 1.3% y-o-y.

    In line with our expectations, health care prices remained subdued only increasing by 0.06% m-o-m, well below the CPI’s measure, which increased by 0.4% m-o-m in November. The discrepancy is likely attributable to the different source data used in calculating the respective indexes.

    Looking ahead, an expected waning of the negative base-effect will likely boost core PCE inflation to some extent. But as long as the underlying trend of medical care inflation (which carries a decent amount of weight in the core index) does not pick up, core PCE inflation is unlikely to accelerate materially."
    For more information, read our latest forex news.
     

Share This Page