Having weakened to unchanged for the last two months, April saw personal spending rise 0.4% MoM (as expected) and personal income rise 0.4% MoM (as expected). However, year-over-year growth in spending (+4.3%, weakest since Sept 2016) and income (+3.6%, weakest since Jan 2017) both signaled a rolling over of the post-Trump exuberance (just in time for another rate-hike by the The Fed).
Major (upward) revisions to spending data seems to have exaggerated April's demise…
But, this is not what The Fed (nor Trump) was hoping for.
Spending and Incomes are still rising though…
And the revisions sent the savings rate soaring off crash lows…
Before and After…
Here's why – huge downward revisions to income and spending was re-engineered higher…
And this is the economic data that The Fed et al. uses to judge whether rate-hikes are appropriate – more noise, less signal.
via http://ift.tt/2rfXXv8 Tyler Durden