Replies to post #6923 on In Zeev's Honor, Plan the Trade and Trade the Plan

[basserdan]

Personal Income And Spend: NASTY

Posted 2013-03-01 08:38
by Karl Denninger

Nasty is the only way to describe this.

Personal income decreased $505.5 billion, or 3.6 percent, and disposable personal income (DPI) decreased $491.4 billion, or 4.0 percent, in January, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $18.2 billion, or 0.2 percent. In December, personal income increased $353.4 billion, or 2.6 percent, DPI increased $325.7 billion, or 2.7 percent, and PCE increased $14.8 billion, or 0.1 percent, based on revised estimates.
http://tinyurl.com/29zpvm

Ouch.

There is a large miss in wages and salaries. This is being blamed on accelerated bonuses in December ahead of tax increases. But remember, people were cheering the numbers for December...... hmmmm.

We'll see next month -- if this doesn't rebound....

Income receipt on assets collapsed, as expected, since so much of the dividend income in December was pulled-forward in advance of expected tax increases.

The "savings rate" collaped to 2.4% from 6.4% last month. Collapse is the proper word here, folks.

PCE ex-price changes increased 0.1%, essentially zero. Durable goods were down 0.8%, with most of it being in motor vehicles and parts.

The Price index is claimed to be up 0.1%, or essentially flat.

The crooners all call this a one-off due to the pulled-forward income on tax changes at the end of the year. We shall see next month whether that excuse holds up or not.

http://market-ticker.org/akcs-www?post=218171