[Platinum Insights] 12.23.22 CPE report and the outlook of the market

PCE Report:  

Personal income in the United States increased 0.4 percent from a month earlier in November of 2022, following a 0.7 rise in October and above market expectations of a 0.3 percent gain.   

Durable goods orders in the US, which measure the cost of orders received by manufacturers of goods meant to last at least three years, fell by 2.1% month-over-month in November 2022.  

Core PCE prices in the US, which exclude food and energy, went up by 0.2% month-over-month in November of 2022, following an upwardly revised 0.3% increase in the prior month, matching market estimates. 

The annual rate, the Federal Reserve’s preferred gauge of inflation, fell to a four-month low of 4.7% from 5% in the prior month.  

The personal consumption expenditure price index in the United States increased by 5.5% year-on-year in November of 2022, the least since October of 2021 and below 6% in September. 

Prices for goods were up 6. % and prices for services increased 5.2%. Food cost went up 11.2% and energy prices increased 13.6%.  

Personal spending in the US edged up a meagre 0.1% month-over-month in November of 2022, following an upwardly revised 0.9% jump in October and below market forecasts of 0.2%, as consumer spending cooled during the holiday season.

U.S. consumer spending barely rose in November, while inflation cooled further, but not enough to discourage the Federal Reserve from driving interest rates to higher levels next year.