The October personal income and outlay's report is not good news. Consumer spending decreased -0.2% from last month, and when adjusted for inflation was a -0.3% decline for October. Consumer spending is another term for personal consumption expenditures or PCE.
Q2 2012 real GDP now shows 1.25% annualized growth after revisions. The advance second quarter GDP estimate was 1.5%, whereas the second revision reported 1.7% GDP growth. The BEA rounds their final GDP numbers, so the actual GDP reported was 1.3%. When we're grabbing economic crumbs, 0.05 percentage points makes a difference.
What the Q2 GDP third estimate shows is a barely breathing economy. Businesses shed inventories, consumers spent way less, a dramatic swing from the Q2 GDP advance report and investment generally is down from the 1st quarter. Shedding inventories can be a recession indicator. Durable goods spending literally vanished in Q2, also a recession indicator. The drought showed up in Q2 GDP, negatively impacting farm inventories and potentially other GDP components indirectly.
The Personal Income and Outlays report for August covers individual income, consumption and savings. Overall the report shows America flatlining again economically. Personal consumption expenditures, called by the press consumer spending, increased 0.2% and in real dollars, flat lined, zero change from July to August.
The BEA has released Personal Income and Outlays report for July. This report covers individual income, consumption and savings and was released earlier in the week. Personal consumption expenditures, called by the press consumer spending, increased 0.8% and in real dollars, increased 0.5% from June to July.
The personal income & outlays BEA economic report for May 2011 is out. PCE or personal consumption expenditures flat lined to zero growth. Personal Consumption Expenditures are part of GDP, which had increased 2.2% for Q1. Take away inflation and PCE for May decreased -0.128%*.
The personal income & outlays BEA economic report for April 2011 is out. PCE or personal consumption expenditures increased 0.4%. Personal Consumption Expenditures are part of GDP, which had increased 2.2% for Q1. Take away inflation and PCE increased 0.1%.
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