Personal Income and Outlays
December's Personal Income and Outlays data started this morning’s batch of economic data. It showed that consumer income rose 0.3% last month while spending fell 0.6%. The income reading was weaker than expected (0.5%), but spending matched expectations. Also in the report is the Fed’s preferred core PCE index for gauging inflation that rose 0.5%, slightly more than forecasts. These readings are a little good and a little bad, causing us to label the report as neutral to slightly negative for mortgage rates.