Week in review
- U.S. July core PCE rose 3.3% y/y
- China July YTD industrial profits slowed to 17.6% y/y
- Bank of Korea raised policy rate by 25bps to 3.00%
Week ahead
- U.S. August non-farm payrolls
- Japan July industrial production and retail sales
- China PMIs
Thought of the week
While last week’s personal consumption expenditure (PCE) data showed inflation remains firm, the consumption details were more constructive. For the first half of 2026, domestic demand proved resilient as supported by record federal tax refunds and drawdowns in household savings, which helped to offset the drag from higher energy prices. As these tailwinds fade ahead, the key question is whether consumer resilience can be sustained towards the end of this year. Encouragingly, the latest PCE data shows that income growth has outpaced spending growth, with personal income taking on a larger role in supporting spending while the saving rate ticked up after bottoming in June. Should this mark the start of a normalization in household savings alongside improving growth on personal income, consumption could grow at a more sustainable pace ahead, helping keep the U.S. economy broadly resilient even as fiscal support fades over the second half of the year.
Component contribution to personal consumption expenditure (PCE) growth
Year-over-year change, percentage points

Source: U.S. Bureau of Economic Analysis, FactSet, J.P. Morgan Asset Management. Past performance is no guarantee of future results. Data reflect most recently available as of 28/08/2026.
Market data

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