After slowing in September, Americans’ personal income and spending data was expected to re-accelerate in October and they did dramatically, rising 0.5% and 0.6% MoM respectively.
This is the biggest monthly spike in 2018…
On a year over year basis, both income and spending re-accelerated, rising 4.3% and 5.0% respectively…
Wages for private workers jumped, rising 4.7% Y/Y while wages for government workers saw a 2.9% increase from the prior year.
With spending continuing to outpace income, personal savings data (revised historically) fell to 6.2% in October, lowest since Dec 2017…
Ironically, as the income and spending data jumped, The Fed’s favorite inflation indicator – Core PCE – slowed notably to +1.8% YoY…
So take your pick – Dovish Fed signals from Core PCE or hawkishg Fed signals from income/spending/savings data?
via RSS https://ift.tt/2DU9yYO Tyler Durden