• Modest growth (PCE): In July, the core Personal Consumption Expenditures (Core PCE) price index showed a notable rebound, rising from 0.0% to 0.3% month-over-month, while remaining stable at 3.3% year-over-year. The headline PCE index also turned upward, climbing from -0.1% to 0.2% monthly and holding steady at 3.7% annually. Against a backdrop of moderate inflationary pressure, personal income increased from 0.0% to 0.4%, and personal spending rose from 0.0% to 0.2%. Alongside the uptick in everyday expenses, the savings rate climbed from 2.6% to 3.0%, indicating a maintained balance between current spending and future savings.
• Confidence deficit (CB Consumer Confidence): In August, the overall Consumer Confidence Index (CB Consumer Confidence) declined from 90.2 to 89.4 points. Meanwhile, the consumer confidence indicator for job availability rose slightly from 24.4% to 27.0%, though it remains near pandemic-era lows. Consumers' uncertainty about labor market prospects is a cause for concern. The situation is further compounded by stagnant real disposable incomes and a drop in the savings rate to 3%.