Blashing for Profits

[blasher]

Personal Income and Outlays . . .
Released on 10/1/2010 8:30:00 AM For Aug, 2010

Highlights

Despite sluggish job growth, the combination of modest growth in average hourly earnings, private employment, and steady or firming weekly hours is gradually boosting wages and salaries-at least in the private sector. Personal income in August advanced a healthy 0.5 percent gain, following a 0.2 percent rise the month before. The latest number for personal income topped the market forecast for a 0.3 percent gain. Unfortunately, a notable part of the latest increase came from a jump in government unemployment benefits. Still, there was moderate strength in wages & salaries component which posted a 0.3 percent boost after increasing 0.4 percent in July. Private industry wages & salaries rose a sharp 0.5 percent, matching the July gain.

In August, consumers kept their wallets open. Personal spending advanced 0.4 percent, equaling the pace in July. The August figure matched analysts' expectations. By components, durables slipped 0.2 percent, nondurables jumped 1.4 percent, and services gained 0.2 percent

PCE inflation was a little higher than usual at the headline level but still quite subdued at the core. The PCE price index rose 0.2 percent in both August and July. The core rate firmed 0.1 percent in each of the last four months. The market had called for a 0.1 percent uptick for August.
c/o Econoday