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Economy in Brief
U.S. Gasoline & Crude Oil Prices Continue to Strengthen
The price of regular gasoline strengthened to $2.71 per gallon (11.9% y/y) in the week ended March 1...
Post Covid-19 Turbulence Rocks and Weakens German Retail Sales
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ISM Manufacturing Index Improves in February as Prices Continue to Strengthen
Factory sector activity recovered last month following moderate weakening in January...
NABE Projects Firm Growth in 2022, as in 2021
The NABE expects 4.0% real GDP growth in 2022 following a 4.8% rise during 2021...
U.S. Construction Spending Strengthens Again in January
Building activity continues to strengthen...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller May 27, 2005
Personal income in April rose 0.7% following a 0.5% increase in March. Consensus expectations had been for a 0.6% rise. Disposable personal income increased 0.5% (6.0% y/y) following two months of 0.4% gain. When adjusted for price inflation take home pay rose 0.1% (3.3% y/y) following a slight decline in March.
Wages & salaries were notably strong and growth during the prior year was upwardly revised. A 0.7% April increase (7.6% y/y) doubled the prior months' increases and year to year growth through March was revised up to 7.6% from 5.8% y/y estimated earlier. Wages in service producing industries surged 0.9% and y/y growth rose to 9.2% versus the 6.4% pace previously estimated. Even factory sector wages showed life and rose 0.5% (6.4% y/y) in April. Year to year growth through March now stands at 7.0%, up from the 5.8% y/y gain estimated last month.
Offsetting some of this strength have been declines in rental income (-14.1% y/y).
Personal consumption increased 0.6% following an upwardly revised 0.9% increase in March. Consensus expectations had been for a 0.8% gain. Durable goods spending rose 0.7% (9.4% y/y) and spending on services rose 0.3% (5.6% y/y) following earlier gains that were revised down.
Nondurables spending surged 1.1% (8.3% y/y) as spending on gasoline & oil jumped 5.5% (25.9% y/y). Spending on clothing recovered 1.5% (5.9% y/y) following the prior month's 2.1% drop.
The PCE chain price index rose 0.4% but less food & energy the 0.1% m/m increase was the slimmest of the year.
Disposition of Personal Income | April | March | Y/Y | 2004 | 2003 | 2002 |
---|---|---|---|---|---|---|
Personal Income | 0.7% | 0.5% | 7.0% | 5.8% | 3.2% | 1.8% |
Personal Consumption | 0.6% | 0.9% | 6.9% | 6.0% | 5.2% | 4.6% |
Savings Rate | 0.4% | 0.5% | 1.5% | 1.3% | 1.4% | 2.0% |
PCE Chain Price Index | 0.4% | 0.5% | 2.7% | 2.2% | 1.9% | 1.4% |
Less food & energy | 0.1% | 0.3% | 1.6% | 1.5% | 1.3% | 1.8% |