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US Data (6/26) - Jobless Claims, PCE Inflation, Spending/Income

(source: Department of Labor)

Jobless claims (official release jobless claims 6/26continue to be just a tad above 300, coming in at 312K this recent week. Staying around 300 keeps the FOMC content but not rosy about the economic recovery. A set of below-300 readings would probably have more impact in terms of shifting monetary policy toward a sooner rate hike than later in 2015.

PCE Inflation, Spending and Income (official BEA release)

Core PCE Price Index (m/m, May): 0.2%. This was the same as the previous reading, and was in-line with forecast.

Personal Spending came in at 0.2% in May, which missed forecasts, which were around 0.4%. We already saw Q1 GDP revised down sharply. Now worries about Q2 growth has surfaced and poor consumer spending data is somewhat discouraging.

Personal Income grew 0.4% in May, which was faster than the 0.3% growth in April. This barely missed forecast of around 0.5%.