US: Income growth likely to moderate to 0.3% in August - Westpac
|Research Team at Westpac, suggests that the increased participation over the past year has helped to moderate US wage pressures but July still saw a 0.4% gain, leaving annual growth at a healthy 3.3%yr.
Key Quotes
“Come August, income growth is likely to moderate to 0.3% but annual growth will be sustained near its Jul level.
Confidence and wealth are also supportive of marginal consumption. Yet, as per August retail sales, households continue to show a restrained approach to spending. Gains for services are likely to mitigate some of the softness in goods consumption, but spending growth will still slow to 0.2%.
Inflation has continued to disappoint, principally due to the impact of energy prices and the USD. But underlying growth in service prices remains robust. In August, expect headline and core prices to both rise around 0.2%.”
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.