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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
DATA REACT
One of the key questions about the recovery from the pandemic has been how quickly the services sector would recover - and April's PCE report suggests that it continues to roar back.
- Looking into subcomponents in real terms, services enjoyed a +0.6% expansion, while goods consumption contracted by 1.3% (led by nonndurables at -1.6% , vs -0.9% durables). On a Y/Y basis, services rose by an all-time high 19.3%, while goods were up 34%.
- This was a bit of a slowdown from March (+1.6% svcs, +8.9% goods), but that month's figures were seen as being distorted in part by large one-off transfer payments to consumers.
- It's difficult to gauge 'consensus' on the underlying goods vs services growth, but overall personal spending was in line with expectations (+0.5% M/M). That's nominal - real spending fell -0.1% M/M vs +0.2% forecast.
- Overall, looks largely in line in terms of the recovery in services so far, though the overall PCE figure will probably weigh a little bit on Q2 GDP projections.
Source: BEA, MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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