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.”
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