- Personal income and spending rise more than expected in June.
- Expenditure prices also grow more than estimated.
- The dollar rises in the market, extending the recovery.
The personal income and spending report for June showed figures above expectations in all indicators. The personal income in June it rose 1.1%, more than the 0.9% market consensus and higher than the 0.3% in May (revised higher from 0.2%). The personal spending it rose 0.6%, above the 0.5% consensus and similar to May’s 0.6% advance (revised from 0.5%).
Price indicators also rose higher than expected. The core price index of personal consumption spending in June rose 0.6%, more than the 0.5% average of analyst expectations and represents an acceleration from the 0.3% rise in May. The annual rate went from 4.7% to 4.8%. It is one of the indicators that the Federal Reserve follows to assess inflation.
The dollar rose after US economic data hit daily highs on almost all fronts. Later on Friday the reading of the Chicago PMI for July and the University of Michigan Consumer Sentiment Index (final reading of July).
Source: Fx Street
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