US: Personal Income expected to rise 03% in June - Wells Fargo

On Tuesday, personal income and spending data in the US will be released. Analysts from Wells Fargo, expect personal income growth to have remained steady at 0.3% June. They see a soft reading in inflation data. 

Key Quotes: 

“Personal income growth accelerated in April and May, rising 0.3 and 0.4 percent, respectively. The continued pace of job growth has helped to maintain momentum behind income growth since the beginning of the year.”

“More importantly, in our view, for the prospects for real consumer spending growth is real disposable income, which rose 0.6 percent in May. The low inflation environment that has persisted over the last few months has helped to lift discretionary income for consumers. The headline PCE deflator has declined in two of the last three months. On a yearover-year basis the headline deflator is up just 1.4 percent.” 

“We expect another soft inflation print in June with a flat reading. We also expect personal income growth remained steady at 0.3 percent in June, which supports our case for continued gains in real consumer spending in the second half of the year.”