PCE in Line, Spending is Not

PCE (+0.4%) came in slightly higher than consensus (+0.3%.)  Core PCE was in line with expectations at +0.3% MoM and 3.7% YoY. Personal spending (+0.7%), however, was well above consensus (0.5%, 0.4% prior) and personal income (0.3%.) In other words, spending increased faster than income. As discussed yesterday, this speaks to a slowing nominal inflation … continue reading →