US consumer remains in a healthy position – ANZ

Research Team at ANZ, notes that the US personal spending rose 0.4% m/m (mkt: +0.4%) in May while income rose 0.2% (mkt +0.3%).

Key Quotes

“Both personal income and consumption were revised higher by a tenth in the previous month. Real personal spending rose 0.3% m/m, from an upwardly revised 0.8% (initial: 0.6%). The PCE deflator rose 0.2% m/m (mkt: 0.2%), while the core PCE rose 0.2% m/m and is up 1.6% y/y, unchanged from April. Overall, the data suggest the US consumer remains in a healthy position. Rising incomes, coupled with elevated consumer confidence (released yesterday) bode well for spending in the second half of the year – as long as Brexit fears continue to fade.

Pending home sales fell 3.7% m/m (mkt: -1.1%) from a downwardly revised 3.9% (initial: 5.1%) in April. On a y/y basis sales rose 2.4%, compared to 1.8% the previous month.

UK: UK home prices rose 0.2% m/m (mkt: 0.0%) in June, matching last month’s rise. Anecdotal reports are beginning to emerge that the fall in the GBP has raised interest from foreign buyers in the city of London.”