January Personal Income Above Expectations..>

US DATA: January Personal Income Above Expectations at +0.6%

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-Jan Personal Income +0.6%; Nominal PCE +0.2%; Chained PCE +0.1%

-Jan PCE Core Price Index +0.1% Vs Dec +0.2%; +1.6% Y/Y

-Jan Core Price Index Unrounded +0.12620% Vs +0.21197% Dec

-Jan PCE Chain Weighted Price Index +0.1% Vs Dec +0.3%; +1.7% Y/Y

-Dec Personal Income Rev To +0.1% (Prv +0.2%); Nominal PCE +0.4% (+0.3%)

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Personal income jumped +0.6% to $116.5 billion in January 2020, 

outpacing the +0.4% rise expected by markets. But December's change in 

personal income was revised down from +0.2% to +0.1%, making the 

contrast with January starker. January's increase in personal 

income mainly reflected hikes in employee compensation and 

social security benefit payments (tied to annual cost of living 

adjustments) alongside other government benefits, such as the 

Affordable Care Act's refundable tax credit. Current dollar PCE 

came in at +0.2%, below the expected +0.3%. Both the total PCE price 

index and the core PCE price index came in at +0.1%, both below the 

+0.2% increase expected by markets for these indices. In the 

BEA's most recent report, personal income estimates were also updated 

for July through December 2019.