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PCE/Incomes Ahead

US DATA
  • The monthly PCE/incomes report for August lands at 0830ET, which will include the monthly gyrations from yesterday’s comprehensive revisions to the quarterly data.
  • Core PCE is seen at 0.2% M/M (with some detailed post-CPI and PPI estimates suggesting it could on the ‘low’ side when unrounded) after 0.22% in July and 0.21% in June.
  • Yesterday’s revisions suggested very little change for Q2 (3.66% annualized after the initial 3.69%) but with larger upward revisions prior to that: Q1 revised up from 4.88% to 4.96% and more notably the 2022 average from 4.84% to 5.09%.
  • Latest real consumer spending trends are also worth watching, after real PCE was revised down from 1.7% to 0.8% annualized in the third estimate for Q2.

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