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- Denmark: Gov't Finance and Debt (Jun)
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Economy in Brief
German PPI Rises at Nine-Month High Pace
The German PPI gained 0.2% in June on the heels of a 0.6% rise in May...
U.S. Leading Economic Indicators Improve
The Conference Board's Composite Index of Leading Economic Indicators increased 0.5% (5.8% y/y) during June...
Philadelphia Fed Factory Conditions Recover; Prices Surge
The Philadelphia Fed reported that its General Factory Sector Business Conditions Index rebounded to 25.7 during July...
U.S. Initial Unemployment Insurance Claims Hit Lowest Since 1969
Initial claims for unemployment insurance dropped to 207,000 during the week ended July 14...
Japan's Trade Deficit Swings Back to Surplus (Small Surplus)
Japan's early June trade results show a goods trade position having swung back to surplus in June from deficit in May...
by Tom Moeller July 31, 2012
Consumers are growing more cautious.Personal
income increased 0.5% (3.5% y/y) last month following a revised 0.3%
May rise. A 0.4% June gain was expected. Wages and salaries were firm and
posted a 0.5% rise (3.5% y/y) after a little-revised 0.1% May uptick. A 0.9%
increase (-0.7% y/y) in interest earnings and a 1.4% jump (9.5% y/y) in
dividend income provided the real strength to the income rise. Disposable
income rose a firmer 0.4% (3.2% y/y) while inflation-adjusted take-home
pay increased 0.3% (1.7% y/y) after an upwardly revised 0.5% May rise.
Consumers took the opportunity afforded by the income gain to lift their savings by 12.1% m/m and increase the savings rate to 4.4%, the highest level in twelve months.
Personal consumption expenditures slipped marginally in June for the second consecutive month. A 0.1% rise was expected. Adjusted for prices, spending fell 0.1% (2.0% y/y). In real terms, inflation-adjusted spending on durable goods was unchanged (8.2% y/y) while real outlays on nondurables fell 0.4% (+1.5% y/y). Real services spending was flat m/m (1.2% y/y).
The PCE chain price index ticked up 0.1% (1.5% y/y) in June after a 0.2% May decline. Durable goods prices slipped 0.1% (-1.6% y/y) while nondurables costs dipped 0.1% as well (+1.3% y/y). Services prices rose 0.2% (2.1% y/y). Less food and energy, the PCE chain price index gained 0.2% (1.8% y/y), its strongest increase since March.
The personal income & consumption figures are available in Haver's USECON and USNA databases. The consensus expectations figures are in the AS1REPNA database.
| Personal Income & Outlays(%) | Jun | May | April | Y/Y | 2011 | 2010 | 2009 |
|---|---|---|---|---|---|---|---|
| Personal Income | 0.5 | 0.3 | 0.2 | 3.5 | 5.1 | 3.8 | -4.8 |
| Wages & Salaries | 0.5 | 0.1 | -0.0 | 3.5 | 4.0 | 2.1 | -4.3 |
| Disposable Personal Income | 0.4 | 0.3 | 0.1 | 3.2 | 3.8 | 3.8 | -2.7 |
| Personal Consumption Expenditures | -0.0 | -0.1 | 0.2 | 3.6 | 5.0 | 3.8 | -1.9 |
| Personal Saving Rate | 4.4 | 4.0 | 3.6 | 4.7 (Jun'11) |
4.2 | 5.1 | 4.7 |
| PCE Chain Price Index | 0.1 | -0.2 | 0.0 | 1.5 | 2.4 | 1.9 | 0.1 |
| Less Food & Energy | 0.2 | 0.1 | 0.1 | 1.8 | 1.4 | 1.5 | 1.4 |
| Real Disposable Income | 0.3 | 0.5 | 0.1 | 1.7 | 1.3 | 1.8 | -2.8 |
| Real Personal Consumption Expenditures |
-0.1 | 0.1 | 0.2 | 2.0 | 2.5 | 1.8 | -1.9 |
