US: Personal spending increase was below expectations - Nomura

In the US, personal spending increased 0.3% m-o-m in July, below expectations (Nomura: 0.5%, Consensus: 0.4%) as a 0.1pp upward revision to June personal spending (to a 0.2% increase) suggests that spending growth was somewhat back-loaded, according to analysts at Nomura.

Key Quotes

“This is likely a reflection of notable upward revisions to previous months in core retail sales and suggests a steady pace of growth in personal spending. Spending on both durable and nondurable goods increased strongly, while spending on services increased modestly. Personal income rose 0.4% m-o-m in July (Nomura: 0.5%, Consensus: 0.3%). The increase is a rebound from a flat reading in the prior month, which was the result of transitory weakness in dividend and interest gains in June.”