Recent Updates
- 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)
- US: Empire State Mfg Survey (Aug)
- 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 December 1, 2005
A strong 0.6% gain in wage & salary disbursements raised U.S. personal income by 0.4% in October. The increase in wages offset declines in proprietors' and rental income while the latest rise in total income followed an unrevised 1.7% surge in September, though income in August was revised down slightly. Consensus expectations had been for 0.5% income growth in October.
The effects of Hurricanes Katrina, Rita & Wilma are reflected in the last three months' income figures. A description of these effects can be found here.
Wages & salary income doubled the previous months' rise and increased 0.6% (5.0% y/y) on the strength of a 1.4% (3.2% y/y) surge in factory sector wages. Service sector wages rose 0.6% (5.5% y/y) after an upwardly revised 0.5% September increase and government wages rose 0.2% (3.4% y/y).
Disposable personal income rose 0.3% (4.2% y/y) following the unrevised 1.9% jump in September. Adjusted for the 0.1% rise in prices, take home pay rose 0.2% (0.9% y/y).
The PCE chain price index rose a modest 0.1% in October, held back by lower gasoline prices which caused nondurable prices to fall 0.4% (+5.1% y/y). Less food & energy the modest 0.1% increase additionally reflected lower light vehicle prices. Services price rose 0.4% (3.2% y/y) for the second month.
Personal consumption expenditures rose an expected, modest 0.2%. Light vehicle sales fell for the third consecutive month and lowered spending on durables by 2.5% (-2.0% y/y). Nondurables outlays rose 0.6% (9.1% y/y) but adjusted for the y/y gain in prices spending on nondurables rose a lesser 3.8% y/y. Services spending rose 0.5% (6.2% y/y).
Disposition of Personal Income | Oct | Sept | Y/Y | 2004 | 2003 | 2002 |
---|---|---|---|---|---|---|
Personal Income | 0.4% | 1.7% | 5.3% | 5.9% | 3.2% | 1.8% |
Personal Consumption | 0.2% | 0.5% | 6.1% | 6.5% | 4.9% | 4.2% |
Savings Rate | -0.7% | -0.8% | 1.1% (Oct '04) | 1.7% | 2.1% | 2.4% |
PCE Chain Price Index | 0.1% | 0.9% | 3.3% | 2.6% | 1.9% | 1.4% |
Less food & energy | 0.1% | 0.2% | 1.8% | 2.0% | 1.3% | 1.8% |