US: Personal income and spending in the limelight – Nomura

Analysts at Nomura expect a steady 0.3% m-o-m increase in US personal income in July.

Key Quotes

“Personal spending likely rose a stable 0.4% m-o-m. Retail sales rebounded solidly in July with broad-based gains across most product categories following soft readings for June. Incoming retail sales data appear consistent with our expectation for solid consumer spending in 2018 in light of personal tax cuts now fully in effect and firm consumer fundamentals. While we expect a steady gain in spending on services, weaker-than-expected residential utility production suggests soft spending on utility services.”