–Pvt Wages +$2B, Proprietors’ Inc & Income Recpts Fell;Core PCE px Unch
By Joseph Plocek
WASHINGTON (MNI) – The U.S. February Personal Income report was a
little worse than expected, showing a slowing in incomes even as
individuals continued spending. The report is consistent with a slow
rate of real GDP growth in Q1 of perhaps +2.5% to +3%.
February Personal Income was flat (the actual amount was +$1.2
billion, or less than a 0.1% advance), Personal Consumption Expenditures
printed +0.3% in their smallest gain since September 2009, and PCE core
prices printed flat.
Private wages slowed to a $2 billion gain after posting +$16.6
billion in January, as manufacturing wages fell. Proprietors’ income
was down $6.1 billion, due to lower farm income, and income receipts
fell $16.5 billion. Rents and transfers gained.
Consumer spending gained 0.3% as real nondurables spending jumped
0.9%. Durables spending fell 0.2% and services spending posted a recent
trend of +0.3%.
Personal savings dropped to $340 billion, their smallest since
October 2008, for a 3.1% rate, also a 16-month low.
Real consumption was also flat, and the January-February average
stands about +2.5% SAAR above the Q4 average. Real consumption was up
1.6% in Q4, so this represents improvement. Nevertheless, the data are
consistent with a slowing in real GDP growth to a more modest rate from
the +5.6% of Q4:2009.
** Market News International Washington Bureau: (202)371-2121 **
[TOPICS: MAUDS$,M$U$$$,MGU$$$,MAUDR$]
