Quick rundown on the data dump

As is usually the case, the PCE inflation stats were as expected with it following CPI and PPI that were reported weeks ago. Both headline and core for April rose .1% m/o/m with the y/o/y gains being 2.1% and 2.5% respectively vs 2.3% and 2.7% in the month before. Versus last year, the disinflation continued with goods prices down .4% while services inflation offset that, rising by 3.3%.

Personal spending in April was higher by .2% m/o/m as forecasted but there was an .8% m/o/m rise in income that was well above the .3% consensus. This took the savings rate to 4.9% from 4.3% but the income surprise was very isolated. The main factors for the upside in income were the 6.9% rise in social security payments m/o/m and a 21% jump in farm income. I can't explain each but looking at just private sector wages and salaries, income was up by .5% m/o/m which is about in line with the 6 month trend.