Personal income and spending in the US came in lower than expected in January
In January, US revenues fell for the first time in 3 years. According to the data of the Ministry of Commerce, personal revenues fell 0.1% in January, while expenditures fell by 0.5%. Expenditures thus recorded the biggest drop since September 2009.
Expectations are 0.3% increase in revenues and 0.3% decrease in expenditures. PCE Deflator increased by 0.1% on a monthly basis, but increased by 1.7% on a year-on-year basis. The previous month had been increased by 1.8%.
The core PCE, followed closely by the Fed, increased by 0.2% month-on-month and 1.9% year-on-year in parallel with expectations.
The acceleration in consumer spending showed signs of cooldown at the end of last year. It is stated that the Fed officials will wait for signs of recovery in inflation and expenditures for the interest rate hike, as long as it will be patient in the January meeting.