#America #news
US personal incomes spiked in January as Americans received another round of aid/relief/stimulus checks, helping to re-charge the economy with the strongest spending advance in 7 months.
The 10% gainer in incomes exceeded forecasts followed a 0.6% gainer in December, a US Commerce Department report showed Friday. Purchases increased 2.4% from the prior month, following a downwardly revised 0.4% decliner in December.
The Fed’s PCE Price Index and Core PCE Price Index, which excludes food and energy, were both up 0.3%. That left Y-Y price changes at 1.5% from 1.3% in December and 1.5%, from 1.4% in December, respectively.
The Key takeaway from the report is this: (1) it shows aggregate inflation pressures were tame in January and (2) the report exposes the potential for a major pickup in spending by way of a personal savings rate that stands at 20.5% as a percentage of disposable personal income.
The final reading for the February University of Michigan Index (MSI) of Consumer Sentiment was revised up to 76.8 from the preliminary reading of 76.2. The final February reading was below the final reading of 79.0 for January. The Chicago PMI for February decreased to 59.5 from an unrevised 63.8 in December.
The Advance report for International Trade in Goods for January showed a deficit of $83.7-B Vs $83.2-B in December.
The Advance report for Retail Inventories for January decreased 0.6%, while the Advance report for Wholesale Inventories for January increased 1.3%.
Looking Ahead: Investors will receive ISM Manufacturing Index for February, Construction Spending for January, and the final IHS Markit Manufacturing PMI for February Monday.
Have a healthy weekend, Keep the Faith!
