U.S. Economic News
June 28, 2019
U.S. Economic Indicators
Real disposable personal income rose 0.3% in May after rising 0.1% in April while real personal consumption expenditure (PCE) rose 0.2%. The PCE price index rose 0.2% (up 1.5% Y/Y) and the core price index rose 0.2% (up 1.6% Y/Y). BEA Report
The University of Michigan Consumer Sentiment Index fell 1.8 points to 98.2 in the final June reading and is unchanged from June of last year. The Index of Consumer Expectations declined 4.2 points to 89.3 while the Current Economic Conditions Index rose 1.9 points to 111.9. University of Michigan
U.S. News
According to the Wall Street Journal, the most recent Fed “stress test” of large U.S. banks found that all 18 banks reviewed are healthy enough to start reducing their capital stockpiles to make payments to investors. The results indicate that the current U.S. financial system is resilient enough to withstand an economic downturn. WSJ
Don Clark reports for the New York Times that U.S. chipmakers are concerned that the trade dispute between the U.S. and China will lead Chinese companies to permanently move away from purchasing American semiconductors, even if a deal between President Trump and President Xi eases tensions. U.S. bans on sales of tech components to certain Chinese entities is expected to induce Chinese companies to start producing more chips domestically. NYT