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June 27, 2011

Fundamentals 6/27: Consumer Income, Inflation

June 27, 2011

Fundamentals 6/27: Consumer Income, Inflation

Consumer Income, Spending, Inflation
-Personal Income: Month-May 0.3%
-Personal Income: Year-May 4.2%
-Consumer Spending: Month-May 0.0%
-Consumer Spending: Year-May 4.7%
-Personal Savings Rate: Month-May 5.0%
-All PCE price index: Month-May 0.2%
-Core PCE price index: Month-May 0.3%
-All PCE price index: Year-May 2.5%
-Core PCE price index: Year-May 1.2%
-PCE (Personal Consumption Expenditures) is inflation gauge geared to consumer spending
-Consumer Spending was dead flat in May

Keeping in mind that last week’s final report of 1Q2011 GDP had Final sales of domestic products at an annualized +0.6%, it appears that GDP growth will be very weak in the current quarter and the near future. Consumers lack either the money or the nerve to spend. Note: Because the first Friday in July is July 1 the BLS Employment Situation Report will not be issued until July 8. This is standard policy for BLS.