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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (52358)	5/30/2002 10:44:58 AM
From: stockman_scott	Read Replies (1) \| Respond to of 65232

Recovery Pace Is Slowing Spending, Incomes Increase Modestly By John M. Berry Washington Post Staff Writer Wednesday, May 29, 2002; Page E01 While the U.S. economy continues to recover from last year's slump, the pace of recovery is slowing from the first quarter's strong gains, several economic reports indicated yesterday. Consumer spending for goods and services rose 0.5 percent last month, somewhat less than analysts had expected, with purchases of durable goods such as new motor vehicles responsible for most of the increase, the Commerce Department said. After adjustment for inflation, the increase was 0.2 percent. Meanwhile, personal incomes rose 0.3 percent in April, partly because of an increase in unemployment benefits paid under a law allowing an additional 13 weeks of eligibility for people who had exhausted their regular 26 weeks of benefits. The wages and salaries component of income rose only 0.1 percent. The latest data indicate "that household-sector demand remains solid," said Maury Harris, chief U.S. economist at UBS Warburg in New York. "That said, the data are consistent with our view that the job market will have to show more improvement soon to prevent spending from slipping." Harris and other analysts said the numbers available so far for the second quarter indicate economic growth at a 3 percent to 3.5 percent annual rate, compared with the first quarter's 5.6 percent annual rate. More than half of that surge was due to increased production to maintain inventories. A continuing swing toward a buildup of inventories is expected to add to this quarter's growth rate, but not nearly as much as it did early in the year. Two other reports indicated some of the economy's continuing strength. First, the Conference Board, a New York-based business research group, said its index of consumer confidence rose slightly this month, to 109.8, from 108.5 in April. Most of the gain was in consumers' assessment of the current economic situation rather than expectations about future conditions. In their reading of labor market conditions, 20.9 percent of the respondents to the monthly survey said they regard jobs as "plentiful," the same share as last month. Those saying jobs are "hard to get" fell to 21.9 percent, from 22.7 percent last month. Some analysts believe that consumers' views about the state of the labor market are a good indicator of their willingness to spend money. Sales of existing homes increased 7 percent last month, to an annual rate of 5.79 million units, the third-highest level on record, the National Association of Realtors said yesterday. The two higher monthly figures came in January, 6.05 million, and February, 5.89 million, highlighting the fact that housing remains the strongest sector of the economy. The association also said the median price of the homes sold last month rose to $153,300, which was 7.1 percent higher than the figure for April 2001. However, last month's figure was only $200 above the level for last December. The median price is the one at which half the houses sold at prices below it and half sold at prices above it. The Commerce Department report on personal incomes and expenditures included some good news on inflation. The price index for personal consumption expenditures rose only 0.1 percent last month and 1 percent in the last 12 months. The "core" PCE price index, which excludes food and energy prices, increased 0.2 percent last month and 1.3 percent from April of last year -- a 12-month rise that was near a 37-year low. © 2002 The Washington Post Company

To: Jim Willie CB who wrote (52358)	5/30/2002 11:03:43 AM
From: Clappy	Read Replies (2) \| Respond to of 65232

I used to be / A Bigger Jackass LOL! Don't sell yourself short. Many think you are doing a fine job at maintaining the status quo. BTW, Seen the dollar this morning? No bouncy-bouncy.