U.S. Economic News

May 30, 2017

U.S. Economic Indicators

Real disposable personal income and real personal consumption expenditures (PCE) both rose 0.2% in April. The PCE price index and core price index also rose 0.2% (up 1.7% and 1.5% Y/Y, respectively).  BEA Report

The Conference Board’s Consumer Confidence Index fell from 119.4 to 117.9 in May, but still remains historically strong.  The decline was driven by a decrease in the expectations index while the present situation index remained largely unchanged.  Conference Board Report

U.S. News

The Wall Street Journal reports that credit scores for U.S. consumers reached a record high early in 2017.  As the economy continues to recover from the recent recession, improving credit scores mean banks are more willing to lend at lower interest rates, which could boost consumer activity.  WSJ
Richard Rubin of the Wall Street Journal reports that congressional Republicans’ effort to reform the U.S. tax code continues to face significant hurdles.  While politicians from both sides of the aisle support tax reform, there is little agreement about the exact type and size of tax cuts, as well as how to account for lost revenue. WSJ