US: Patchy economic data releases – ANZ

Analysts at ANZ suggests that the US economic releases were weaker than the expectations in the previous session.

Key Quotes

“US personal and spending came in weaker than expected in March, with downward revisions to February. Personal income rose 0.2% m/m (mkt: 0.3%) while personal spending was unchanged (mkt: 0.2%). The data confirm the moderation in Q1 personal consumption revealed in the GDP data last week.”

“The core PCE deflator fell 0.1% m/m (+1.6% y/y) – the largest monthly fall since 2001, although this was in line with expectations and largely led by temporary factors. The April ISM also disappointed, coming in at 54.8 (mkt: 56.5; last: 57.2) with new orders and employment falling. Despite the patchiness of the data, and the lack of clear inflationary signal, markets are still pricing in around 70% odd of a Fed hike by June.”