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Economy in Brief
German PPI Rises at Nine-Month High Pace
The German PPI gained 0.2% in June on the heels of a 0.6% rise in May...
U.S. Leading Economic Indicators Improve
The Conference Board's Composite Index of Leading Economic Indicators increased 0.5% (5.8% y/y) during June...
Philadelphia Fed Factory Conditions Recover; Prices Surge
The Philadelphia Fed reported that its General Factory Sector Business Conditions Index rebounded to 25.7 during July...
U.S. Initial Unemployment Insurance Claims Hit Lowest Since 1969
Initial claims for unemployment insurance dropped to 207,000 during the week ended July 14...
Japan's Trade Deficit Swings Back to Surplus (Small Surplus)
Japan's early June trade results show a goods trade position having swung back to surplus in June from deficit in May...
by Tom Moeller February 28, 2005
Personal income dropped last month 2.3% following the 3.7% jump in December which was driven by Microsoft's dividend payment. Consensus expectations had been for a 2.6% decline. Excluding the dividend effect personal income increased 0.5% last month after a 0.6% rise in December. Figures from July through December were revised
Wage & salary income rose 0.6% (5.8% y/y) in January after an upwardly revised 0.5% December gain. Factory sector wages inched 0.1% higher but rose 4.8% y/y. Earlier figures were revised up sharply
Personal disposable income fell 2.6% (5.8% y/y) after the 4.1% surge in December. Adjusted for price inflation disposable income fell 2.8% m/m but rose 3.5% y/y.
Personal consumption fell slightly after the 0.8% surge in December and spending was lightly short of Consensus expectations for a 0.1% rise. Durable goods spending fell 4.3% and reversed a like gain in December due to lower motor vehicle sales. Spending on nondurables rose 0.8% despite the decline in gasoline prices last month and services spending rose 0.4% (5.3% y/y).
The PCE chain price index rose 0.2% in January. The 0.3% rise in the price index less food & energy was the steepest since December 2002.
| Disposition of Personal Income | Jan | Dec | Y/Y | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| Personal Income | -2.3% | 3.7% | 6.0% | 5.6% | 3.2% | 1.8% |
| Personal Consumption | -0.0% | 0.8% | 5.7% | 6.0% | 5.2% | 4.6% |
| Savings Rate | 1.0% | 3.6% | 1.1% | 1.2% | 1.4% | 2.0% |
| PCE Chain Price Index | 0.2% | -0.0% | 2.2% | 2.2% | 1.9% | 1.4% |
| Less food & energy | 0.3% | 0.0% | 1.6% | 1.5% | 1.3% | 1.8% |
