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Analysts at ANZ Bank New Zealand noted that the US personal income and spending were generally in line with expectations in September when incorporating upward revisions to the previous month.  

Key Quotes:

“Income rose 0.2% m/m (last: 0.4%,  mkt: 0.4%) with spending climbing 0.4% (last: 0.5%,  mkt: 0.4%). On the income side, wages and salary growth moderated to 0.2%, from 0.5% the previous month. Farm incomes are also under significant pressure, down another 14.8% m/m (last: -12.7%) bringing annual growth to -32.5%.”

“The savings rate was 6.2%, matching the lowest level since 2013. On the spending side, durable goods and autos drove gains.”

“The core PCE deflator rose 0.2% m/m (last: 0.0%,  mkt: 0.1%), with airfares providing a boost. Meanwhile, the Dallas Fed manufacturing survey continued to signal expansion in October.”

“Production eased but new orders lifted. Prices of raw materials and prices received  rose. Capital expenditures rose, but expectations for six months ahead dipped.”