Chicago remains cold/Inflation stats, along with income & spending/Stock market gains helping home sales

Wrapping up the regional manufacturing survey’s, the November Chicago index fell to just 40.2 from an already weak 41.6 in October, and thus well below 50.

The October PCE inflation stats were as expected as they usually are when coming after both CPI and PPI. The headline rate grew .2% m/o/m and 2.3% y/o/y (vs 2.1% last month). The core rate was higher by .3% m/o/m and 2.8% (vs 2.7% last month). Inflation continues to be solely driven by services which was up by 3.9% y/o/y while goods prices fell by 1%. Food prices were up by 1% while energy prices fell by 5.9% y/o/y. Inflation breakevens are unchanged in response to the in line stats.