*SCALPSWINGSTRADDLE*

[Zephyr]

Personal Income and Outlays
Released On 8/30/2013 8:30:00 AM For Jul, 2013
Prior Prior Revised Consensus Consensus Range Actual
Personal Income - M/M change 0.3 % 0.2 % -0.1 % to 0.3 % 0.1 %
Consumer Spending - M/M change 0.5 % 0.6 % 0.3 % 0.0 % to 0.5 % 0.1 %
PCE Price Index -- M/M change 0.4 % 0.4 % 0.2 % 0.1 % to 0.3 % 0.1 %
Core PCE price index - M/M change 0.2 % 0.2 % 0.1 % to 0.2 % 0.1 %
PCE Price Index -- Y/Y change 1.3 % 1.3 % 1.4 %
Core PCE price index - Yr/Yr change 1.2 % 1.2 % 1.2 %
Highlights
The third quarter is having a bumpy start as both personal income and personal spending were near flat. Personal income inched up 0.1 percent in July after gaining 0.3 percent the month before. Analysts expected a 0.2 percent gain. However, the wages & salaries component was notably weak, declining 0.3 percent after an increase of 0.4 percent in June.

Consumer spending slowed sharply to a 0.1 percent rise in July but followed a strong 0.6 percent boost the month before. July posted lower than market expectations for a 0.3 percent increase. Weakness was led by a 0.2 percent dip in durables, following a 0.9 percent jump the prior month. Services were unchanged after a 0.3 percent advance in June. Strength was in nondurables, up 0.9 percent after a 1.2 percent spike in June.

Headline inflation eased notably to a 0.1 percent rise in July from a 0.4 percent jump in June. The core inflation rate slowed to a 0.1 percent increase from 0.2 in June.