Free Trial
JGB TECHS

(M2) Correction Extends

US STOCKS

Late Session Rebound

AUSSIE 10-YEAR TECHS

(M2) Corrective Cycle Remains In Play

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
--Core PCE Prices Flat M/M; Overall Prices +0.1% M/M, +2.2% Y/Y
--Nominal PCE Up 0.3%, Real PCE Up 0.2%; Personal Income +0.3% 
By Kevin Kastner, Harrison Clarke, and Shikha Dave
     WASHINGTON (MNI) - Nominal PCE rose 0.3% in August, below the 0.4% 
increase expected, while core PCE prices were flat on the month, keeping 
the year/year rate at 2.0% after rounding, according to data released by 
the Bureau of Economic Analysis Friday morning. 
     The 2.0% year/year rate for core PCE prices remains at the Fed's 
inflation target for the fourth month in a row after June's gain was 
revised upward to 2.0%. 
--PCE GROWTH SLOWER THAN EXPECTED
     The 0.3% gain in current dollar PCE, below expectations, followed 
no revision to the July number at 0.4%, though it was close to being 
rounded up to 0.5%. Spending on durable goods was down 0.1% in the 
month, while nondurable goods spending rose 0.5% because of a 1.9% 
increase in energy prices. Services spending was up 0.4%.   
     Real PCE was up 0.2% in August, as the overall PCE price index was 
up only 0.1% despite the increase in energy prices. The overall PCE 
price index was up 2.2% year/year, down from 2.3% in July. 
     After inflation adjustment, durable goods PCE rose 0.2%, while 
real nondurable goods PCE was up 0.4% and real services PCE was up 0.2%. 
     An MNI calculation shows that real PCE in August was up 3.1% at an 
annual rate from the second quarter average, and was up 3.7% after an 
adjustment for only having two months of data. This was below the 3.8% 
PCE pace in the second quarter reported on Thursday.      
--INCOME RISES, SAVINGS RATE UNCHANGED
     Personal income growth was boosted by a 0.5% increase in wages and 
salaries, as well as gains in most other income categories. 
     The saving rate was unchanged in August at 6.6%, the same as in 
July after revisions. The July and August saving rates were below the 
6.8% rate reported for the second quarter. 
     Personal taxes rose by 0.4% in the month after a 0.3% increase in 
July. Disposable personal income rose by 0.3% after a 0.3% in July. Real 
disposable income was up 0.2%, the same pace as in July.   
     ** MNI Washington Bureau: 202-371-2121 ** 
[TOPICS: MAUDS$,MT$$$$,M$U$$$]

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.