US: Personal income and spending data in the limelight - Nomura

Research Team at Nomura, suggests that in the US session, the focus will be on the release of the personal income and spending data.

Key Quotes

“Aggregate personal income grew at a steady pace in July, up 0.4% m-o-m, following a somewhat weaker pace of income growth in the prior two months. The employment report for August suggests that total aggregate weekly earnings stalled following a sizable earnings growth in July. We think that the slowdown in earnings in August should hold back aggregate income somewhat and forecast only a 0.2% m-o-m increase in August.

On the spending side of the balance sheet, we think consumption grew on balance at an average pace. Data on durable goods spending were quite weak, as demand for autos slowed sharply in August. Nondurable goods spending appeared to have remained flat while service spending likely accelerated in August. Our bottom-up approach implies that personal spending likely grew by 0.3% m-o-m in August.”