U.S. Economic News
July 30, 2019
U.S. Economic Indicators
Real disposable personal income rose 0.3% in June after rising 0.2% (revised) in May, while real personal consumption expenditure (PCE) rose 0.2%. The PCE price index rose 0.1% (up 1.4% Y/Y) and the core price index rose 0.2% (up 1.6% Y/Y). BEA Report
The Conference Board’s Consumer Confidence Index rose from 124.3 (revised) in June to 135.7 in July. Consumer Confidence rebounded to its highest level this year amid renewed consumer optimism surrounding current and future business and labor market conditions. Conference Board Report
The National Association of Realtors pending home sales index rose 2.8% in June (up 1.6% Y/Y). NAR reports that the second consecutive monthly increase in contract signings is the start of a positive trend driven by a strong job market, rising home values, and low mortgage rates. NAR Report
U.S. News
Greg Ip of the Wall Street Journal reports that a likely reduction in the European Central Bank’s already-negative policy rate adds pressure on the Federal Reserve to lower interest rates to prevent U.S. rates from diverging too much from foreign interest rates. Central banks keep domestic rates in line with foreign rates in order to avoid depreciating their domestic currency, and this practice results in lower interest rates and stronger demand in each country. WSJ