JPM economist Daniel Silver said in...>

US DATA REACT: JPM economist Daniel Silver said in the morning's November PCE

and durable goods data, "the news on inflation was basically spot on with

expectations, while the growth-related data came out above expectations and

added some upside risk to our 2.5% 4Q real GDP forecast."

- "On inflation, the core PCE price index increased 0.08% samr in November,

bringing the year-ago change in the index up from 1.4% to 1.5%. On a three-month

annualized basis, the change in the core index (1.8% saar) is fairly close to

the FOMC's 2% target," he said. "Meanwhile, the headline PCE deflator increased

0.2% samr in November and was up 1.8% oya."

- "Real consumption beat expectations in November, increasing 0.4%, and it now

looks like real spending will be up about 3.0% saar in 4Q," Silver said.

"However, income growth did disappoint in November (0.3%), and the saving rate

declined to 2.9%, a new low for the expansion."