Personal income grew 0.4% MoM in December, in line with expectations with disposable personal income also up 0.4% MoM. Personal consumption growth accelerated to a three month high of 0.7% MoM, beating projections of a 0.5% MoM increase. Goods spending growth remained strong at 0.9% MoM, and services spending growth saw a slight acceleration to 0.6% MoM. Real consumption growth was still strong at 0.4% MoM.

The PCE price index increased 0.3% MoM, the highest monthly rate since April, and the annual rate was recorded at 2.6% YoY, in line with expectations. Core PCE inflation rates also came in as expected at 0.2% MoM and 2.8% YoY, unchanged from the November rate of 2.8% YoY. Both goods and services saw moderate increases at 0.2% MoM and 0.3% MoM respectively. Energy saw its first flare up since the beginning of 2024 at 2.7% MoM.