Will Growth of US Personal Incomes and Spending Signalize a Rate Hike in December?
It is expected, that the US stock markets will open relatively unchanged today, as investors expect the release of some important data on inflation, as well as other key economic indicators in the US.
Data on personal income and spending in the US will also be published, which are important indicators, as they give some idea of possible future inflation trends and economic indicators. Since the US economy depends on the consumer, higher incomes and expenses should greatly facilitate the work of the Fed. If the Personal consumption expenditures (PCE), as it expected, grow to 1.5% from 1.4%, this may be enough to get another rate hike in December.
The British pound has undergone some pressure against the US dollar in anticipation that the Bank of England will raise interest rates this year. The softer GDP data for the second quarter caused a decline in the pound. GDP in the UK in the second quarter grew by 0.3%.