US: Expect a steady 0.2% increase in personal income - Nomura

Analysts at Nomura expect a steady 0.2% m-o-m increase in US personal income in January and for personal spending, they expect a modest 0.2% m-o-m gain after a 0.4% increase in December.

Key Quotes

“January retail sales were soft across many categories and pose some downside risk. Core retail sales were flat during the month, suggesting that consumer outlay on goods may have been weak. In addition, sales at auto dealerships slowed in January as weather-driven replacement purchases slowed gradually and incentive spending likely peaked in 2017. This suggests that personal spending on autos was likely weak in the month. On the other hand, we expect a decent 0.4% increase in spending on services, which may have offset some of the drag from spending on goods.”