US: Personal income and spending report to kick off an eventful week - TDS

Research Team at TDS, suggests that the US personal income and spending report for April will kick off an eventful week for US data.

Key Quotes

“Spending is projected to increase by 0.7% m/m (TD & market) on account of higher auto sales, which should help to underpin a rebound in Q2. Incomes should rise by 0.5% m/m (market: 0.4% m/m), while both TD and the market expect the core PCE deflator to grow by 0.2% m/m.

Later in the morning we will see May’s Chicago PMI, for which TD expects a moderate rebound to 52.2 following last month’s 50.4; the market is more cautious and looks for a slight uptick to 50.5. Consensus is far more upbeat on the Dallas Fed Activity Index and calls for an improvement from –13.9 to –8.

Last on the data calendar is the Conference Board measure of Consumer Confidence. Both TD and the wider market expect to see an improvement from April’s 94.2, with TD calling for a below-consensus 95.3 (market: 96.3).”