The Commerce Department reports consumer spending rose just 0.1% in June, matching the smallest increase of 2017 and in line with expectations. Households spent more on health care, but they saved on gasoline because of cheaper prices at the pump. Income growth and inflation were unchanged. Incomes were flat for the first time since November. The Personal Consumption Expenditures index was unchanged with the annual rate of inflation at 1.4%, down from 2.2% earlier in the year.
CoreLogic’s ational home price index for June was up 1.1% from May and up 6.7% compared to a year ago. Home prices are now up almost 50% from the 2011 trough. Unsold inventory as a share of all households was 1.9%, the lowest for a second-quarter reading in over 30 years. Corelogic expects that to push prices higher than forecasted. A year ago, the firm predicted only a 5.3% annual increase for June 2017.
The Institute for Supply Management said its manufacturing index fell to 56.3% last month after reaching a three-year high of 57.8% in June. Economists expected 56.2%. Readings above 50% indicate expansion.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
