It’s a big day today, there’s lots of economic stuff that reported today.
Employment Cost Index
PCE Deflator MoM
PCE Deflator YoY
PCE Core MoM
PCE Core YoY
S&P Case Schiller 20 City MoM
S&P Case Schiller Composite YoY
S&P Case Schiller Home Price Index
Chicago Purchasing Manager
Employment Cost Index was up slightly, that ain’t bad.
Personal Income was up 0.5%, that’s a good thing (I always like a little more money in my pocket).
Personal Spending was ZERO PERCENT, reflecting the slowdown in consumer spending that businesses are feeling.
So, consumer incomes are increasing slightly, consumer spending has stopped increasing, and savings are increasing. Doesn’t sound like confidence in the economy to me.
By Shobhana Chandra
July 31 (Bloomberg) -- Consumer spending in the U.S.
stagnated in June as Americans used the biggest gain in incomes
in three months to boost savings, indicating a weak handoff to
the second half of the year.
Household purchases, which account for about 70 percent of
the economy, were unchanged after a 0.1 percent decrease the
prior month that was previously reported as little changed, a
Commerce Department report showed today in Washington. The median
estimate in a Bloomberg News survey of economists called for a
0.1 percent rise. Incomes rose 0.5 percent, lifting the savings
rate to 4.4 percent, the highest in a year.
The results may raise concern limited job prospects are
causing Americans to pull back at the same time business
investment is cooling and the European debt crisis has triggered
a slowdown in overseas markets. Federal Reserve policy makers
meet today and tomorrow to determine whether more monetary
stimulus is needed to shore up an economy that’s slowed for two
The Bloomberg survey median called for incomes to rise 0.4
percent in June. Wages and salaries climbed 0.5 percent after a
0.1 percent gain. The 0.3 percent gain in May was revised up from
The saving rate increased from 4 percent.
Disposable income, or the money left over after taxes,
increased 0.3 after adjusting for inflation. It rose 0.5 percent
in the prior month.
The June results indicate the consumer was losing steam as
the quarter drew to a close. Household spending rose 1.5 percent
from April through June, the slowest pace in a year, Commerce
Department data showed last week. Gross domestic product climbed
at a 1.5 percent annual rate, cooling from a 2 percent pace in
the prior three months.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury