U.S. personal income and spending likely rose moderately in December

U.S. personal income and spending data for the month of December is set to release tomorrow. According to a TD Economics research report, income and spending are likely to have risen moderately in nominal terms. The expectation of 0.3 percent suggest zero growth in real terms, as the PCE price index is expected to have risen 0.3 percent, led by increased gasoline prices.

Real consumer spending is estimated to have risen 1.6 percent quarter-on-quarter annual rate in the fourth quarter as a whole, down from a 3.1 percent rate in the third quarter.

“We estimate the core PCE price index rose 0.2 percent m/m in December, keeping the 12-month change low at 1.6 percent. The 12-month change in the overall PCE price index probably rose to a still-low 1.7 percent from 1.5 percent”, added TD Economics.