Global| Apr 28 2003Personal Income and Spending Up
by:Tom Moeller
|in:Economy in Brief
Summary
Personal income rose an expected 0.4% last month. The gain was driven by a healthy 0.5% (3.0% y/y) rise in wages and salaries which was the strongest monthly rise in wages since last August. Wages in private industry rose 0.5% (2.7% [...]
Personal income rose an expected 0.4% last month. The gain was driven by a healthy 0.5% (3.0% y/y) rise in wages and salaries which was the strongest monthly rise in wages since last August. Wages in private industry rose 0.5% (2.7% y/y).
Disposable personal income rose 0.3% (4.4% y/y) following a 0.2% February rise and a 0.4% gain in January.
Personal consumption expenditures rose a less than expected 0.4% in March following two months of little change. The rise reflected a 1.5% gain in durables spending which was lifted by a 4.8% gain in light vehicle sales. Spending on nondurable goods rose just 0.2%, the weakest rise in six months, and spending on services rose a moderate 0.3%.
The PCE price deflator rose 0.3% (2.4% y/y) in March. Less food and energy the price deflator again rose just 0.1% (1.5% y/y), the same as the average increase during the last twelve months.
Research from the Federal Reserve titled "A Rolling Tide: Changes in the Distribution of Wealth in the US, 1989-2001 can be found here.
| Disposition of Personal Income | Mar | Feb | Y/Y | 2002 | 2001 | 2000 |
|---|---|---|---|---|---|---|
| Personal Income | 0.4% | 0.2% | 3.6% | 2.8% | 3.3% | 8.0% |
| Personal Consumption | 0.4% | 0.1% | 4.5% | 4.5% | 4.5% | 7.0% |
| Savings Rate | 3.6% | 3.6% | 3.6% | 3.7% | 2.3% | 2.8% |
| PCE Price Deflator | 0.3% | 0.5% | 2.4% | 1.4% | 2.0% | 2.5% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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