Friday, September 27, 2013

It's The Economy Stupid: Personal Income & Spending

Personally, I need my income because I spend.

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Personal Income

Aug

0.004

0.004

0.001

0.002

Personal Spending

Aug

0.003

0.003

0.001

0.002

PCE Deflator MoM

Aug

0.10%

0.10%

0.10%

--

PCE Deflator YoY

Aug

1.20%

1.20%

1.40%

1.30%

PCE Core MoM

Aug

0.10%

0.20%

0.10%

--

PCE Core YoY

Aug

1.30%

1.20%

1.20%

1.10%

Univ. of Michigan Confidence

Sep F

78

--

76.8

--

 

Consumer Spending Climbed 0.3% in August as U.S. Incomes Rose

 

Consumer spending in the U.S. rose in August for a fourth consecutive month as a pickup in incomes bolstered the biggest part of the economy.   Household purchases, which account for about 70 percent of the economy, climbed 0.3 percent after a revised 0.2 percent advance in July that was more than previously estimated. The advance in August matched the median forecast of economists in a Bloomberg survey. Incomes rose 0.4 percent, the most in six months.  Rising home values, stock market gains, and an improved job market are cushioning the effects of this year’s payroll tax increase and giving households the means to spend.  Projections for spending ranged from increases of 0.1 percent to 0.5 percent after a previously reported July gain of 0.1 percent, according to the Bloomberg survey of 82 economists. The August increase in incomes, which matched the median estimate, followed a revised 0.2 percent rise the prior month.      The figures follow a Commerce Department report yesterday that showed the economy grew at a 2.5 percent annualized rate in the second quarter after expanding 1.1 percent in the first three months of the year. Consumer spending increased at a 1.8 percent pace after 2.3 percent gain in the first quarter.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

225-342-0013

jbroussard@treasury.state.la.us

 

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