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August 30, 2013

Minimal Increases in Income and Spending

August 30, 2013

Minimal Increases in Income and Spending

Personal Income and Outlays (July 2013)

– Personal Income Month/Month   +0.1%.  Previous was +0.3%

– Consumer Spending Month/Month +0.1%. Previous was +0.6%

– PCE Price Index Month/Month   +0.1%.  Previous was +0.4%.

– Core PCE price index Month/Month +0.1%.  Previous was +0.2%

– PCE Price Index Year/Year     +1.4%. Previous was +1.3%.

– Core PCE price index Year/Year +1.2%. Previous was +1.2%.

PCE (Personal Consumption Expenditure) is an inflation index geared to what consumers actually buy.

The near-flat Personal Income and Consumer Spending are signs of continued very limited GDP growth.

Chicago PMI (August 2013)

– Business Barometer Index 53.0. Previous was 52.3.

University of Michigan Consumer Sentiment (August 2013)

– Sentiment Index  82.1. Previous was 80.0.

Despite flat wages and spending the consumer is in a better mood. This must have something to do with the Justice Department’s relaxed attitude to marijuana.