- Personal income increased $66.9 billion (0.4 percent)
- Disposable personal income (DPI) increased $53.0 billion (0.4 percent)
- Personal consumption expenditures (PCE) increased $136.0 billion (1.0 percent).
- Real DPI decreased less than 0.1 percent.
- Real PCE increased 0.6 percent.
- The PCE price index increased 0.4 percent
- The core PCE index which excludes food and energy increased 0.1 percent.
The above data was reflected in the GDP report on Friday.
Savings Rate Declines
Households dipped into their savings to fund purchases last month, pushing savings to their lowest level since 2008.
“Relying on consumer savings to move the economy forward is not going to last for long,” said Chris Rupkey, chief economist at MUFG in New York.
Core PCE, the Fed's prefered measure of inflation, rose a mere 0.1% for the fifth consecutive month. Core PCE has underperformed the Fed's target for over five years.
Mike "Mish" Shedlock