Link Securities | The Commerce Department released on Friday that personal income rose 0.4% in the US in December from November, a reading that was in line with the FactSet consensus of analysts’ expectations. Compensation of employees rose 0.4 per cent in the month, driven by private wages and salaries (0.4 per cent).
Personal spending rose 0.7% in December from the previous month, significantly more than the 0.5% expected by analysts. Consumer spending accelerated in services (0.6% versus 0.4% in November) and non-durable goods (1% versus. 0.3% in November). On the other hand, spending on durable goods decelerated (0.6% versus 2.7% in November).
The personal consumption expenditure (PCE) price index rebounded 0.3% in December from November, a reading that matched that expected by FactSet consensus analysts. In December goods prices increased by 0.2% and services prices rose by 0.3%.
On a year-on-year basis, the PCE rose by 2.6% in December (2.4% in November), also in line with analysts’ expectations. Food prices increased by 0.2% in the month, the same as in November, but energy rose by 2.7%, compared with 0.2% in the previous month.
The underlying PCE, which excludes unprocessed food and energy prices, increased by 0.2% in December relative to November, while on an annual basis it rose by 2.8% (2.8% in November). Both readings were in line with consensus expectations.
