US consumer spending likely to be limited by mild weather in November

In US, personal income in November, as expected by the market consensus is likely to record at 0.2 % month on month, while consumer spending when considered on mom basis is likely to come in at 0.3%.

Real consumer spending is also expected to come in similar to consumer spending as per consensus expectations, PCE chain Price index is likely to come in at 0.1% mom, while it is expected at 0.4 % yoy.

The core PCE chain Price index, as expected by consensus, is likely to show 0.1%mom, and 1.3% yoy. The consumer spending might be limited by the unusual mild weather in November and the stalling caused due to this weather.

"Capped by a weather-induced stalling in outlays on services, the nominal value of personal consumption expenditures (PCE) probably edged just 0.1% higher for a third consecutive month in November. Our projections would place the overall and core PCE inflation barometers 0.4% and 1.3% above their respective year-ago levels", says Societe Generale in a research note.