US DATA: Oct Pers Income flat, PCE -0.2%, Core PCE prices +0.1% for
+1.6% YOY, worse than expected but “reflects the effects of Hurricane
Sandy.” The PCE drop puts real PCE -0.3% (biggest drop since Sept’09), a
poor start to the pd, and reflects drops in both goods & services. Pvt
wages -$17.1b (-$18.2b from Sandy, so excluding storm effects would have
been slightly higher) vs +$22.4b in Sept as goods and services payrolls
decreased. Rents and receipts on assets were up; transfers -$6.7b and
proprietors income -$2.1b. Also, new Q2 ests lowered incomes. Weak Nov
retail sales data suggest spending decelerated again. The -0.2% PCE was
equaled in May. Savings rose, putting the saving rate at 3.4% vs 3.3% in
Sept. Savings has been trending lower as the year progresses, the same
pattern seen in 2010.
Featured Videos