Personal Income, Spending and Prices June Preview: Strange numbers compared to GDP
|
Personal income is expected to slip in June while personal spending is set to rise. Market impact will be limited after Thursday’s Q2 GDP data, Joseph Trevisani, an analyst at FXStreet, informs.
Key quotes
“Personal spending is forecast to increase 5.5% following May’s 8.2% gain. This measure of consumption fell 12.6% in April and 6.9% in March.”
“Personal income is projected to drop 0.5% last month following a 4.2% decline in May and a 10.8% rise in April.”
“The personal consumption expenditure price index (PCE) is expected to be flat on the month in June and 0.5% higher on the year. The core monthly index will be 0.2% higher with the annual figure at 1.0%.”
“Markets have priced in an extreme drop in American GDP in the second quarter. Though these spending and income figures will be released on Friday after the GDP numbers they may be at odds with the expected economic activity in the Covid quarter.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.