–Core PCE prices +1.3% YOY; Savings Rate 2.7%, Low Since Sept 2008
By Joseph Plocek
WASHINGTON (MNI) – The March personal income report adds little to
the outlook, since its data already were incorporated into Friday’s Q1
GDP release, but the data do suggest a weak trajectory at the start of
a new period.
Personal income printed +0.3%, Personal Consumption Expenditures
were a higher +0.6%, and PCE core prices were +0.1% for +1.3% over the
year.
Private wages gained $11.8 billion after +$6.8 billion in February
as manufacturing pay gained. Proprietors’ income, rents, transfers rose;
income on assets fell $8.3 billion after -$8.4 billion in February. The
latter held down the total.
Real spending was flat on services but up 3.4% on durables. Details
from the GDP report showed the spending was on furnishings and household
fix-up.
Saving was almost $304 billion, its smallest since September 2008,
as durables buys took off. The savings rate was 2.7%. its lowest since
September 2008.
It appears spending came at a time that consumers tired of saving.
An implication is that this is a ‘weak report’ that suggests not much in
reserve to spend in Q2. Another offsetting implication is that core
wages are growing again.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,MFU$$$,MGU$$$,MAUDR$]
