Personal income rise
outpaced inflation in '98
Americans' incomes climbed 4.4 percent in 1998, significantly outpacing inflation. In every state, per capita income grew faster than prices. Nationally, average income for America's 270.3 million people last year was $26,412, up 4.4 percent from 1997, the Commerce Department said Tuesday. The figures include not only wages and salaries, but other sources of income such as investment earnings and government benefits. That per capita income growth was actually a bit slower than the 4.7 percent increase in 1997. But the inflation rate -- as measured by the government's price index for personal consumption expenditures -- declined from 2 percent in 1997 to 0.8 percent last year. Factoring that in, Americans' buying power -- per capita income growth after inflation -- jumped 3.6 percent in 1998 compared with 2.7 percent in 1997. [B600]
Consumers more confident
Consumer confidence, a key indicator of future economic activity, rose for the sixth straight month in April, the Conference Board reported Tuesday. [B601]
Home resales at record pace
U.S. home resales unexpectedly rose to a record pace in March, a sign mortgage rates near 7 percent, consumer confidence and job gains are keeping housing fully charged. Resales increased 0.6 percent last month to an annual rate of 5.05 million, surpassing the previous record of 5.04 million set in January, the National Association of Realtors said Tuesday. Analysts had forecast March sales at a 4.93 million rate.
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