Friday, November 30, 2012

It's The Economy Stupid: Income & Spending

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Personal Income

OCT

0.2%

0.0%

0.4%

 

Personal Spending

OCT

0.0%

-0.2%

0.8%

 

PCE Deflator MoM

OCT

0.1%

0.1%

0.4%

0.3%

PCE Deflator YoY

OCT

1.8%

1.7%

1.7%

1.6%

PCE Core MoM

OCT

0.2%

0.1%

0.1%

 

PCE Core YoY

OCT

1.7%

1.6%

1.7%

1.6%

 

There are so many references to SuperStorm Sandy in this release it’s hard to determine what’s real and what’s not real.

 

Clearly Personal Income is stagnant, and that certainly is not good.

 

Once again Personal spending has gone negative, and that certainly is not good.

 

And as for the PCE (Personal Consumption Expenditure) numbers, the 1.7% PCE Deflator and the 1.6% PCE Core numbers are well below the Fed’s 2.0% target, and have been consistently below target for the last four (4) years.  That certainly is not good.

 

 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

 

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