2 May 2016
US data was a mixed bag - Westpac
Research Team at Westpac, notes that the US data on Friday was a mixed bag.
Key Quotes
“US personal income rose 0.4% in March (vs 0.3% expected), but personal spending rose only 0.1% (vs 0.2% expected) with vehicle spending a factor. The savings rate thus rose to 5.4%, helping household balance sheets further.
The Fed’s preferred inflation measure, core PCE deflator, slipped from 1.7% to 1.6% y/y as expected. The employment cost index rose 0.6% in Q1, also as expected.”
Key Quotes
“US personal income rose 0.4% in March (vs 0.3% expected), but personal spending rose only 0.1% (vs 0.2% expected) with vehicle spending a factor. The savings rate thus rose to 5.4%, helping household balance sheets further.
The Fed’s preferred inflation measure, core PCE deflator, slipped from 1.7% to 1.6% y/y as expected. The employment cost index rose 0.6% in Q1, also as expected.”