US: Core PCE inflation stands out as the highlight in today’s session - TDS

Research Team at TDS suggests that the US Core PCE inflation stands out as the highlight amid a number of economic releases.

Key Quotes

“TD expects core inflation to come in slightly weaker than the market due to soft medical service costs; we project core inflation to remain unchanged at 1.7% y/y on a 0.2% m/m gain while the market looks for 1.8% y/y and 0.3% m/m. We are equally downbeat on headline PCE inflation and look for a acceleration to 1.9% from 1.6% on a year-ago basis, below the consensus for 2.0%.”

“TD is in line with the market for personal income and expects a 0.3% m/m print while personal spending should post a 0.4% advance (mkt: 0.3%). For ISM Manufacturing, we look for a decline to 55.5 from 60.0 in February while the consensus expects a slight increase to 56.2. Motor vehicle sales will trickle out throughout the day and give the first barometer of consumer spending for February; market expectations are for a modest acceleration to an annualized 17.7m units.”