WS #15138
US August personal spending rose +0.9% versus a +0.8% consensus, indicating robust consumer activity. Core PCE inflation cooled to +3.4% YoY, beating expectations of +3.7%. This data divergence supports a 'soft landing' narrative, reducing the probability of a hawkish surprise at the October Fed meeting and providing a floor for equity valuations despite geopolitical headwinds.
US Macro Data & Inflation
US August personal spending rose +0.9% versus a +0.8% consensus, indicating robust consumer activity. Core PCE inflation cooled to +3.4% YoY, beating expectations of +3.7%. This data divergence supports a 'soft landing' narrative, reducing the probability of a hawkish surprise at the October Fed meeting and providing a floor for equity valuations despite geopolitical headwinds.