Announced this morning, personal spending rose 0.4% in July as expected, while personal income increased 0.3%, slightly lower than expected. Both figures show the consumer remains strong and should continue to support economic growth. Meanwhile, inflation measures remain at the high end of the acceptable range for the Federal Reserve. The US Personal Consumption Expenditures (PCE) deflator increased 0.1% for July and has increased 2.3% on an annual basis. The core PCE deflator, which excludes food and energy, increased 0.2% in July and is up 2.0% on an annual basis. Both increased as expected, which means the Federal Reserve likely remains on track with measured interest rate increases in the months ahead, as stated by chair Jerome Powell last week. In all, equity futures are lower this morning heading into the market open.
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