US: Personal spending likely to increase by 0.5% in March - Nomura

Analysts at Nomura expect a 0.5% m-o-m increase in US personal spending in March, consistent with a healthy increase in core retail sales in the month.

Key Quotes

“However, backward revisions to core retail sales suggest that the personal spending data for January and February could be revised down as well, pointing to weaker momentum in personal consumption expenditure (PCE) in Q1. Spending on durable goods was likely boosted by a solid recovery in expenditure on autos. Spending on nondurable goods likely rose modestly, while we expect services spending to rise firmly driven by a surge in spending on gas and electric utility services due to unseasonably cold weather. We forecast a steady 0.3% m-o-m increase in personal income following a healthy 0.4% m-o-m in February.”