Recent Updates
- Israel: Average Housing Prices (Q2)
- Japan: NCI Economic Activity Index (Aug)
- US: NAHB/Wells Fargo Housing Market Index (Aug)
- Canada: Wholesale trade, MSIO (June)
- Pakistan: Foreign Currency Deposits and Utilization (JUL)
- more updates...
Economy in Brief
U.S. Housing Affordability Declines Further in June
The NAR Fixed Rate Mortgage Housing Affordability Index fell 3.6% in June...
EMU Output Makes Solid Gain in June
The European Monetary Union posted a 0.7% increase for industrial output in June...
U.S. Producer Prices Fall During July; Core Increase Weakens
The Producer Price Index for Final Demand fell 0.5% during July...
U.S. Unemployment Claims Continue on an Uptrend
Initial claims for unemployment insurance filed in the week ended August 6 rose 14,000 to 262,000...
RICS Survey Points to More U.K. Housing Sector Weakness
The survey of housing market conditions in the U.K. continues to show strength in prices versus weakness...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller April 29, 2005
Personal income in March topped Consensus expectations and rose 0.5% following an upwardly revised 0.4% increase in February. Disposable personal income also rose 0.5% (5.8% y/y) although when adjusted for price inflation take home pay was unchanged m/m (3.3% y/y).
Wage & salary income rose 0.3% (5.8% y/y) following an upwardly revised like gain in February. Wages in service producing industries rose 0.4% (6.4% y/y) however factory sector wages fell 0.2% (5.8% y/y), the first decline in four months.
Personal consumption increased 0.6% and beat expectations for a 0.4% gain while February's increase was revised up. Durable goods spending jumped 2.2% (5.2% y/y) as spending on motor vehicles advanced 6.2% (7.5% y/y).
Nondurables spending fell slightly even though spending on gasoline & oil rose 6.4% (16.7% y/y), all a function of a 7.6% (20.2% y/y) rise prices. Spending on clothing fell 2.3% (+1.9% y/y). Services spending rose 0.6% (6.1% y/y) as the cost of household operation, including utilities, rose 1.7% (10.3% y/y).
The personal savings rate fell to 0.4%. The low number compares to the net worth of the household sector (from the flow of funds accounts) which has been rising. Total net worth was 5.5 times disposable income in 4Q04, up 10% versus the lows of two years earlier. The gain was powered by a 23.5% rise in the owners equity in real estate over those two years.
The PCE chain price index rose 0.5% and less food & energy, the 0.3% m/m increase pulled the y/y gain back to its highest level since early 2003.
Disposition of Personal Income | Mar | Feb | Y/Y | 2004 | 2003 | 2002 |
---|---|---|---|---|---|---|
Personal Income | 0.5% | 0.4% | 6.0% | 5.6% | 3.2% | 1.8% |
Personal Consumption | 0.6% | 0.7% | 6.1% | 6.0% | 5.2% | 4.6% |
Savings Rate | 0.4% | 0.5% | 1.0% | 1.2% | 1.4% | 2.0% |
PCE Chain Price Index | 0.5% | 0.3% | 2.4% | 2.2% | 1.9% | 1.4% |
Less food & energy | 0.3% | 0.2% | 1.7% | 1.5% | 1.3% | 1.8% |