PCE slowed to 2.5% signaling closer proximity to Fed’s target.


Personal Consumption Expenditures price index slowed to 2.5% for the 12 months ended in June from 2.6% the month before.

The index rose by an expected 0.1% in June.

This data should keep the Fed on track for interest rate cut(s) in the coming months.

“Personal income increased $50.4 billion (0.2 percent at a monthly rate) in June. Disposable personal income (DPI)—personal income less personal current taxes—increased $37.7 billion (0.2 percent). Personal outlays—the sum of personal consumption expenditures (PCE), personal interest payments, and personal current transfer payments—increased $59.3 billion (0.3 percent) and consumer spending increased $57.6 billion (0.3 percent). Personal saving was $703.0 billion and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.4 percent in June.”

https://www.bea.gov/news/2024/personal-income-and-outlays-june-2024


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