The April personal income and outlays report shows personal income has no change from last month, mainly due to less inflation. Disposable income decreased -0.1%, but adjusted for inflation, shows a monthly increase of 0.1%. Consumer spending decreased -0.2%, but when adjusted for inflation grew by 0.1% for the month, which is meager.
The February personal income and outlays report shows personal income bounced back by 1.1% from last month's nose dive that was due to the payroll tax holiday expiration and fiscal cliff deal. Disposable income increased 1.1% but after adjusted for inflation, shows a monthly increase of 0.7%. Consumer spending increased 0.7%, but when adjsted for inflation grew by 0.3% for the month.
Many in the press are claiming the increase in wages from the February employment report implies the economy is back on track, all is well and things are all looking up. We beg to differ. The average hourly wage did increase by 4¢ to $23.82 for all those employed by the private sector and has increased 2.1% from a year ago. The below graph shows what many are cheering over.
The BEA released corporate profits for Q3 2012 along with the GDP. Corporate profits after tax shot up 5.2% from Q2 2012 to $1,752.2 billion. Corporate profits after tax are also up 18.6% from a year ago.
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.
Americans spent more than they earned. That's what's implied in the BEA's September personal income and outlay's report. Consumer spending increased 0.8% from last month, and when adjusted for inflation was a 0.4% increase for September. Consumer spending is another term for personal consumption expenditures or PCE.
Consumer spending increased 0.5% from last month, yet when adjusted for inflation was only a 0.1% increase for August. Consumer spending is a name coined by the press and means personal consumption expenditures or PCE. Real personal consumption expenditures are hugely important to economic growth as consumer spending is about 71% of GDP.
Consumer spending increased 0.4% from last month, in actual dollars and also when adjusted for inflation. Personal consumption expenditures are often called consumer spending by the press. Real Personal Consumption Expenditures, or PCE, are about 71% of GDP. Graphed below is the monthly change in consumer spending.
Consumer spending was unchanged from last month, but after taking price increases into account, decreased by -0.1%. Personal consumption expenditures are often called consumer spending by the press. Real Personal Consumption Expenditures, or PCE, are about 71% of GDP. Real means chained to 2005 dollars, thus adjusted for inflation. Below is a graph of real PCE.
December's unemployment report had a little indicator of better news. A recession indicator, those forced into part-time hours due to slack economic conditions just plummeted. Overall, people being forced into part-time jobs declined by 371,000 in a month, to a tally of 8,098,000 people.
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