US: Personal income and spending expected to retain its upbeat tone - TDS

Research Team at TDS, suggests that the US personal income and spending report is expected by the market to retain its upbeat tone from March, with forecasted advances of 0.3% m/m and 0.4% m/m for income and consumption, respectively.

Key Quotes

“TD is slightly more bearish and looks for a 0.2% monthly gain in each, which should allow the rebound in US household spending to be sustained. TD and the market are in line for core PCE inflation to remain unchanged at 0.2% m/m and 1.6% y/y.

TD expects pending home sales for May to remain largely unchanged from April (+0.1% m/m) while the market looks for a 1.1% monthly pullback.”