Recent Updates
- US: Consumer Sentiment (Jan-prelim), IP & Capacity Utilization (Dec)
- Consumer Sentiment (Jan-prelim)
- US: Industrial Production Detail (Dec)
- Canada: CPI (Dec), Intl Transactions in Securities (Nov)
- Canada Regional: CPI by Province (Dec)
- Germany: Hotel and Restaurant Turnover (Nov), Tax Revenues (Q3)
- Turkey: IIP, International Reserves, Foreign Trade Indexes (Nov)
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Economy in Brief
Delay in Release
of Data for Construction, MSIO, Intl Trade, Wholesale Trade, Monthly Treasury, Retail Sales, Business Sales & Inventories, and Housing Starts Due to Lapse in Federal Government Funding.
U.K. Retail Sales Begin to Lose Momentum
U.K. retail sales fell by a sharp 1% in December...
Philadelphia Fed Manufacturing Index Rebounds; Pricing Pressure Eases
The Philadelphia Fed reported that its General Factory Sector Business Conditions Index increased to 17.0 during January...
U.S. Initial Unemployment Insurance Claims Slip
Initial claims for jobless insurance eased to 213,000 (-2.6% y/y) during the week ended January 12...
Passenger Car Registrations Hold to Low Ground in Europe
Passenger car registrations in Europe fell on a year-over-year comparison for the fourth consecutive months in December...
by Tom Moeller June 30, 2005
May personal income rose just 0.2% following a downwardly revised 0.6% gain the prior month. Consensus expectations had been for a 0.3% increase.
Wages & salaries rose a slim 0.1% (7.0% y/y) following the 0.7% pop in April. Wages in service producing industries rose 0.1% (8.3% y/y) after the 0.9% April gain but factory sector wages rose 0.3% (5.4% y/y) following a downwardly revised 0.4% April increase.
Disposable personal income rose 0.2% (5.5% y/y) following three months of 0.4% and 0.5% gain. When adjusted for price inflation take home pay rose 0.1% (3.2% y/y) for the second consecutive month.
Personal consumption was unchanged in May following a 0.6% increase in April due to the 4.5% m/m drop in light vehicle sales. Consensus expectations had been for a 0.1% rise. Spending on durables fell 1.8% (+3.7% y/y) and nondurables spending dipped 0.4% (+6.9% y/y) as gasoline prices fell. Spending on services rose 0.6% (5.6% y/y).
The PCE chain price index was unchanged with lower gas prices but less food & energy the 0.2% m/m increase was double the prior month's slim increase.
Lessons Learned from the Recent Business Cycle from Philadelphia Federal Reserve Bank President Santomero is available here.
| Disposition of Personal Income | May | April | Y/Y | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| Personal Income | 0.2% | 0.6% | 6.7% | 5.8% | 3.2% | 1.8% |
| Personal Consumption | 0.0% | 0.6% | 5.7% | 6.0% | 5.2% | 4.6% |
| Savings Rate | 0.6% | 0.5% | 1.0% | 1.3% | 1.4% | 2.0% |
| PCE Chain Price Index | 0.0% | 0.4% | 2.2% | 2.2% | 1.9% | 1.4% |
| Less food & energy | 0.2% | 0.1% | 1.6% | 1.5% | 1.3% | 1.8% |
