U.S. Core PCE Price Index (Mar) Actual 0.2%, Expected 0.2%, Previous 0.2%
U.S. Personal Spending (Mar) Actual -0.2%, Expected -0.1%, Previous 0.4% (Revised from 0.2%)
U.S. Personal Income (Mar) Actual -0.3%, Expected -0.2%, Previous -0.2%
Release Explanation: Core Personal Consumption Expenditures (PCE) measures price changes in Consumer goods and services excluding food and energy, and consists of the actual and imputed expenditures of households. It includes data pertaining to Durables, non-Durables, and Services. It is essentially a measure of goods and services targeted towards individuals and consumed by individuals, therefore it is very important in assessing the sentiment of the Consumer, especially in a Service based economy. Also included with this report is data on personal spending and income. This is a very important release.
The impact from this release affects the CPI, Retail Sales, Housing and Consumer Confidence numbers. This is released at the same time as Personal Spending and Personal Income reports, and all three complete a very strong picture of consumer sentiment. Named by the Federal Reserve as their preferred measure of near-term Inflation.
”A currency will be greatly impacted by this report as it reveals the strength of the public in their ability, or desire, to spend or save, and therefore how strong economic growth will be going forward. This report also contains monthly data on incomes,” TheLFB-Forex.com Trade Team said.
TheLFB-Forex.com Trade Desk Thoughts: In March, personal spending fell by 0.2% while personal income also decreased, by 0.3%, the Commerce Department said today. The two indexes resumed their downward path, after rising for the previous two months.
Personal savings, as a percentage of disposable personal income, was 4.2% in March, after hitting the highest level in a decade in January. Disposable personal income, income after taxes, rose by less than 0.1% in March.
The PCE price index decreased less than 0.1 percent in March, in contrast to an increase of 0.3 percent in February. The PCE price index, excluding food and energy, increased 0.2 percent, the same increase as in February.
Compared with a year earlier, the PCE price index rose 0.7%, after a 0.8% advance in December. The PCE price index excluding food and energy rose 1.6% year over year, after a 1.7% gain in December.
Forex Technical Reaction: S&P futures continue to trade in positive territory. In the currency market, the dollar has strengthened since the 08:30 EDT releases but is still weaker overall