MNI BRIEF: US May Spending Below Estimate; Core PCE Price 2.7%

U.S. personal consumption expenditures dipped 0.1% in May, below the 0.2% increase Wall Street expected, while personal income also fell 0.4% despite forecasts for a 0.3% rise, the Bureau of Economic Analysis said Friday. Spending on goods fell 0.8% in the month, partly offset by a 0.1% increase in services spending.

Headline and core PCE inflation were a tad stronger than expected at 0.1% and 0.2%, respectively, bringing the 12-month rates to 2.3% and 2.7%, respectively. The data are in line with the Federal Reserve's expectation for activity to slow and inflation to pick up under President Trump's high tariffs regime. (See: MNI FED WATCH: Powell Signals No Cut 'Til Tariff Effects Clear)