After May’s surprisingly positive rebound, income and spending growth was expected to slow in June and both printed right at expectations (+0.4% MoM and +0.3% MoM respectively).
This is the 4th month of slowing spending growth in a row…
However, thanks to the historical revisions, incomes are rising at 4.9% YoY as spending growth slows to 3.9% YoY…
Which has stabilized the savings rate…
And finally, The Fed’s favorite inflation indicator – Core PCE Deflator – rose 1.6% YoY, cooler than the +1.7% YoY expectations.
So maybe, just maybe, there’s one item for Powell to hang his rate cut on.
via ZeroHedge News https://ift.tt/2ymamSt Tyler Durden