US DATA: Dec Pers Income +0.5% (largest gain since Feb), PCE flat,
Core PCE prices +0.2% for +1.8% YOY. These data are already incorporated
into Q4 GDP but the pattern is new: real PCE -0.1% in Dec after +0.1% in
Nov and +0.1% in Oct. This shows weaker spending as all categories fell
in Dec with higher prices. Pvt wages +$29.1b (mfg & services rose) vs
-$1.4b in Nov and +$41b in Oct, continuing the recent seesaw pattern.
Proprietors’ income, rents, transfers and income receipts rose. Social
Sec was boosted $7.1b by a recalculation of earnings for recent
retirees. Savings surged as income was not spent; savings rate was 4.0%.
For all 2011, PI was up 4.7% and PCE also +4.7% in their biggest gain
since 2007, and the saving rate was 4.4%. Jan should see more buying if
wages steady.