Global| Apr 29 2011U.S. Personal Income Gains But Spending Slows
by:Tom Moeller
|in:Economy in Brief
Summary
Personal income rose 0.5% during March following a 0.4% February increase, initially reported as 0.3%. A 0.4% gain had been expected. Disposable personal income gained 0.6%. Like last month, the increase in income was paced by a [...]
Personal income rose 0.5% during March following a 0.4%
February increase, initially reported as 0.3%.
A 0.4% gain had been expected. Disposable personal income gained 0.6%.
Personal consumption expenditures gained 0.6% after a 0.9% February rise, revised up from 0.6%. A 0.5% March increase had been expected. Spending on goods rose 0.6% (7.5% y/y) paced by a 3.9% jump (24.9% y/y) in gasoline & energy. Durables spending rose 0.1% (7.6% y/y) as furniture buying increased 1.6% (3.7% y/y). In constant dollars, personal consumption rose 0.2% last month (2.7% y/y) after a 0.5% February gain.
The PCE chain price index increased 0.4% last month (1.8% y/y), the same as in February. Higher energy costs again accounted for most of the strength with a 3.7% jump (15.3% y/y). Food prices also gained 0.8% (2.9% y/y) for the second straight month. The core PCE price deflator ticked up 0.1% and 0.9% y/y, still near the record low.
The personal income & consumption figures are available in Haver's USECON and USNA databases. The expectations figures are in the AS1REPNA database.
Cap In Hand: The High Price of Higher Education from the Federal Reserve Bank of Atlanta is available here.
| Personal Income & Outlays (%) | Mar | Feb | Jan | Y/Y | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Personal Income | 0.5 | 0.4 | 1.1 | 5.3 | 3.1 | -1.7 | 4.0 |
| Wages & Salaries | 0.3 | 0.4 | 0.4 | 4.4 | 2.1 | -4.3 | 2.1 |
| Disposable Personal Income | 0.6 | 0.4 | 0.8 | 4.6 | 3.1 | 0.7 | 5.1 |
| Personal Consumption Expenditures |
0.6 | 0.9 | 0.5 | 4.6 | 3.5 | -1.0 | 3.0 |
| Saving Rate | 5.5 | 5.5 | 5.9 | 5.3 (Mar.'10) |
5.8 | 5.9 | 4.1 |
| PCE Chain Price Index | 0.4 | 0.4 | 0.3 | 1.8 | 1.7 | 0.2 | 3.3 |
| Less Food & Energy | 0.1 | 0.2 | 0.2 | 0.9 | 1.3 | 1.5 | 2.3 |
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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