Analysts at Nomura expect a steady 0.4% increase in US personal income in May and for personal spending, they forecast a solid 0.5% increase, after a 0.6% increase in April.
Key Quotes
“We expect the momentum in personal spending to firm in Q2 and a robust increase in May to confirm our expectations. With the continued increases in retail gasoline prices in May, much of the spending was likely concentrated on gasoline and other energy goods. However, the May retail sales report indicates that excluding energy-related and other volatile components, core retail sales growth was still robust with broad-based gains.”
“With elevated consumer sentiment and steady growth in income, we continue to expect a strong consumer outlook in the near term.”
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