Income Growth Jumps 0.5% In December, But Spending Is FLAT

Walmart shoppers

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UPDATE:The numbers were close to being in line with expectations.

Personal income grew 0.5% in December vs. 0.4% that was expected.

Spending came in with a goose egg, growing 0% in December, vs. expectations of 0.1% growth.

The net effect is a fairly large jump in the savings rate.

As for prices PCE core jumped 0.2% month over month, just above the 0.1% that was expected.

You can find the full release here.

ORIGINAL POST: Here’s the first big data release of what should be a big weak: Personal income and spending for December comes out at 8:30 AM ET.

Analysts expect that income grew by 0.4% and that spending grew by 0.1%.

Both grew 0.1% in November.

Also, given all the disinflation/QE2 talk lately, we’ll pay special note to the PCE deflator, which is expected to have grown 2.3% year over year.

We’ll have the numbere here LIVE.