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Analysts at Nomura are forecasting a steady 0.4% m-o-m increase in US June personal income as tightening labor markets and steady employment growth help gradually increase earnings.

Key Quotes

“For personal spending, we expect a healthy 0.5% m-o-m increase, despite soft core retail sales in June. Spending on nondurables excluding fuels and gasoline likely slowed, while spending on gasoline likely increased strongly.”

“Sales of motor vehicles and parts likely increased healthily, based on the receipts at auto and parts dealers in June. In addition, we expect a rebound in service spending in June, driven by solid gains in spending on food services in June. A healthy labor market and persistent consumer optimism will continue to support personal spending in the near term.”