US Income And Spending Disappoint, Again
Skerdian Meta • 1 min read
As we mentioned in the previous update, today is Labour Day so the economic calendar is light. But the Yanks are so industrious that they work even on May 1st, which means that there is some economic data coming from across the ocean.
Later today we´ll get to see how US manufacturing sector has been doing this month, but about an hour ago we received the personal income and spending numbers and the core price index and they were horrible.
The price index fell 1 point, that´s bad news for inflation and consequently the FED because inflation is the main mandate of the FED.
Personal income also lost some of its sine of the previous months but the worst news comes from personal spending. It fell flat this month which is worrying, but what´s even more worrying is the trend.
The pace of spending increase has been softening in the last several months and now it falls flat. What comes next? According to the trend of the last months, we should see a decline in spending by the US consumer next time.
Lower spending will affect the prices and inflation and of course US retail sales. Let´s hope this is the bottom of the trend though and next month we see some positive numbers.
The USD is a tad softer now after the release which is bad news for our forex signal in AUD/USD. That signal hit SL after the numbers were published, but just opened another one. On the next update, we will highlight the reason why we opened the last two forex signals, respectively in NZD/USD and AUD/USD.