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US Personal Incomes & Expenditures Fall

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The US Bureau of Economic Analysis within the Department of Labor has provided an update to domestic consumer behavior through a series of related data releases this morning.

The key release is an insight into the Labor market structure via the month’s Personal Incomes figure, month on month for April this has been stated at 0.3%, this represents a fall in the pace of incomes growth over the previous month’s 0.5% figure, market consensus was for this number to read at 0.3% in April.

Personal Spending has also fallen accordingly, the April month on month figure is now showing a -0.1%, this compares to a prior month increase of 0.9% and anticipated growth in spending of just 0.2%.

Supporting the Personal Spending data was the publication of the Personal Consumption Expenditure Price Indices. Year on year to April this metric has come in at 1.6% as compared to the prior month reading of 1.1% growth. Month on month this figure is currently reading 0.2% compared to the previous number which was also 0.2%.

A more stable reading comes in the form of the Core Personal Consumption Expenditure data which excludes the volatile elements such as food and fuel. Year on year this number has been announced at 1.4% for April, this compares to a March reading of 1.2%. Month on month this number is showing as 0.2% in April which the same as the March number of 0.2%, no change had been anticipated to this figure.

Three Federal Reserve board members are making speeches later today, it has been a while since the markets have had updated insight into the Feds thought process. Nothing specific is being anticipated from these talks however all have the potential to offer guidance and as such will be closely watched by market participants. The next meeting of the Federal Open Markets Committee is not until 17th June.

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