U.S. personal income rose 0.3% in January with spending up 0.4% U.S. personal income rose 0.3% in January with spending up 0.4%, better than expected. December's flat reading on income was not revised. The 0.4% December spending increase was revised down to 0.1%. Wages rose 0.2% versus -0.1% previously (was unchanged). Disposable income was up 0.4% after a 0.1% decline in December (revised from unchanged). The savings rate was steady at 4.3% (December revised from 3.9%). The PCE chain price index slowed to a 0.1% gain versus December's 0.2%, while the core rate steady at a 0.1% pace previously.
Futures remain lower following economic data Stock futures continue to point to a sharply lower open as the market reacts to Russia’s invasion of Crimea. U.S. investors will be receiving a large amount of economic data today, including personal spending and income data for January, which have already been released. Personal income rose 0.3% versus the expected increase of 0.2%, while spending rose 0.4% versus the expected increase of 0.1%.
Canada IPPI Preview Canada IPPI Preview: Canada's industrial product price index is expected to rise 0.5% in January (median same at +0.5%) after the 0.7% gain in December. The BoC's commodity price index rose 1.6% m/m in January after the 5.7% surge in December. The CPI's gasoline price index fell 0.1% m/m in January, suggesting some downside risk to our estimate. Yet the CAD saw further deterioration in January, loosing nearly 3% of its value versus the USD and driving our projection for another rise in the IPPI. The IPPI is expected to grow at a 1.5% y/y clip in January after the 1.4% pace in December -- still tame but a contrast with the recent low 0.2% y/y contraction seen in October. The RMPI is projected to rise 2.0% m/m in January.
U.S. Personal Income Preview U.S. Personal Income Preview: Analysts expect January personal income to be up 0.2% (median 0.2%) following an unchanged pace in December. Analysts expect consumption to be up 0.2% (median 0.1%) as well after rising by 0.4% in December.