Recent Updates
- Japan: ** Japan IP forecasts have rebased from 2010=100 to 2015=100. We are currently working on processing the new data.**
- ** New Zealand Jobs Online has changed its reported frequency from monthly to quarterly and rebased from August 2010=100 to Q4 2010=100. **
- Turkey: International Reserves (Mar); Mauritius: PPI Press (Mar)
- Spain: Flash GDP (Q1), Retail Trade (Mar)
- France: Preliminary CPI (Apr), Household Consumption of Manufactured Products (Mar)
- more updates...
Economy in Brief
Kansas City Federal Reserve Factory Index Hits Record High
The Kansas City Fed reported that its index of regional manufacturing sector business activity surged to a record 26...
U.S. Initial Unemployment Insurance Claims Decline Sharply
Initial claims for unemployment insurance fell sharply to 209,000 (-17.1% y/y)...
German Confidence Flattens and Falters
German confidence for May is mooted at a 97.8% queue percentile standing...
U.S. Mortgage Loan Applications Are Little Changed; Rates Remain High
The MBA total Mortgage Applications Volume Index eased 0.2% last week (-1.9% y/y)...
Japan Shows Very Moderate Growth As Trade War Clouds Gather
Japan’s sector indexes showed a solid gain in February...
by Tom Moeller June 30, 2006
Personal income rose 0.4% last month following an upwardly revised 0.5% gain during April. The May increase doubled Consensus expectations for a 0.2% rise.
The PCE chain price index rose an expected 0.4% and reflected a 4.6% (30.5% y/y) jump in gasoline & oil prices. Less food & energy the 0.2% (2.1% y/y) rise in the chain price index also was expected. Prices for clothing & shoes fell 0.1% (-0.6% y/y) and furniture & household equipment prices continued their long standing decline (-5.0% y/y).
A strong 1.2% (7.4% y/y) gain in personal interest income and a 0.9% (11.1% y/y) increase in dividend income paced last month's rise in income.
Wage & salary disbursements were unchanged (4.8% y/y) after a downwardly revised 0.8% spike during April. Private sector wages were unchanged (5.1% y/y) as factory sector wages fell 0.1% (+2.4% y/y). Service producing industries wages also fell 0.1% (+5.4% y/y) after a 1.1% April jump.
Government transfer payments for health insurance & disability surged 1.0% (12.1% y/y) reflecting Medicare drug coverage.
Disposable personal income rose 0.3% (4.7% y/y) after an upwardly revised 0.6% April jump. Personal taxes rose 0.5% (10.6% y/y).
Adjusted for price inflation, disposable personal income fell slightly (+1.4% y/y) marking the third m/m decline this year. A 0.1% decline in real disposable income per capita (+0.5% y/y) left the measure down 0.4% year to date.
Personal consumption matched Consensus expectations for a 0.4% rise but adjusted for price inflation spending rose just 0.1% (3.3% y/y). Real spending on durables dropped 0.6% (+4.7% y/y) reflecting lower sales of motor vehicle & parts (-1.9% y/y) while real spending on furniture & household equipment rose 0.3% (12.7% y/y).
The personal savings rate was again negative.
The Trend Growth Rate of Employment: Past, Present and Future from the Federal Reserve Bank of Kansas City is available here.
Disposition of Personal Income | May | April | Y/Y | 2005 | 2004 | 2003 |
---|---|---|---|---|---|---|
Personal Income | 0.4% | 0.7% | 5.4% | 5.4% | 5.9% | 3.2% |
Personal Consumption | 0.4% | 0.7% | 6.7% | 6.5% | 6.5% | 4.9% |
Savings Rate | -1.7% | -1.6% | 0.0% (May '05) | -0.5% | 1.7% | 2.1% |
PCE Chain Price Index | 0.4% | 0.5% | 3.3% | 2.8% | 2.6% | 1.9% |
Less food & energy | 0.2% | 0.2% | 2.1% | 2.0% | 2.0% | 1.3% |