It's The Economy Stupid: Income & Spending

Income & Spending.  The two just go together.  Can’t have one without the other.

 

Economic Event	Period	Economic Survey	Actual Reported	Original Prior	Revised Prior
Personal Income	APR	0.1%	0.0%	0.2%	0.3%
Personal Spending	APR	0.0%	-0.2%	0.2%	0.1%
PCE Deflator MoM	APR	-0.2%	-0.3%	-0.1%
PCE Deflator YoY	APR	0.8%	0.7%	1.0%
PCE Core MoM	APR	0.1%	0.0%	0.0%	0.1%
PCE Core YoY	APR	1.0%	1.1%	1.1%	1.2%

 

Okay, a goose egg for Personal Income.  No increase, but no decrease.  Personal Spending down -0.2%.  The March Personal Income number was revised upward slightly to 0.3%, but Personal Spending for March was revised downward to 0.1%. 

 

Personal Consumption for the month of April was also a goose egg, while Personal Consumption Year On Year was up slightly to 1.1%.  The drop in consumer spending was unexpected, and one could say that incomes have stagnated, putting the biggest part of the U.S. economy on shaky ground at the start of the second quarter.  Household purchases account for about 70 percent of the economy.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Email:  jbroussard@treasusry.state.la.us