Personal income is expected to slip in June while personal spending is set to rise. Market impact will be limited after Thursday’s Q2 GDP data, Joseph Trevisani, an analyst at FXStreet, informs.
Key quotes
“Personal spending is forecast to increase 5.5% following May’s 8.2% gain. This measure of consumption fell 12.6% in April and 6.9% in March.”
“Personal income is projected to drop 0.5% last month following a 4.2% decline in May and a 10.8% rise in April.”
“The personal consumption expenditure price index (PCE) is expected to be flat on the month in June and 0.5% higher on the year. The core monthly index will be 0.2% higher with the annual figure at 1.0%.”
“Markets have priced in an extreme drop in American GDP in the second quarter. Though these spending and income figures will be released on Friday after the GDP numbers they may be at odds with the expected economic activity in the Covid quarter.”
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