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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (5325)	4/30/2004 9:27:52 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

U.S. real incomes, spending slows in March Friday, April 30, 2004 1:49:02 PM WASHINGTON (AFX) - Real consumer spending decelerated in the last month of the first quarter, rising just 0.1 percent in March, the smallest gain in five months, the Commerce Department estimated Friday Meanwhile, real disposable incomes also increased 0.1 percent, the smallest gain in six months In nominal terms (not adjusted for inflation), incomes, disposable incomes and consumer spending all increased 0.4 percent in March. The growth in nominal incomes was slightly higher than the 0.3 percent expected by Wall Street economists, but spending was only half as strong as the 0.8 percent consensus The "real" figures are adjusted for inflation. In March, the personal consumption expenditure price index increased 0.3 percent while core prices (excluding food and energy prices) rose 0.2 percent. The PCE index is up 1.6 percent in the past year. The closely watched core rate is up 1.4 percent in the past year, the fastest year-over-year inflation since February 2003 Federal Reserve Chairman Alan Greenspan declared last week that the threat of deflation was over, but he also told a congressional panel that slack in the economy would, for a time, prevent a wage spiral that would drive inflation higher In March, nominal wages increased 0.2 percent, slower than the 0.3 percent gain in inflation. Wages had increased 0.7 percent in January and 0.5 percent in February Proprietors' income accelerated in March, rising 1.9 percent. Rental income fell 1.3 percent, while income from assets was unchanged. Inflation-adjusted spending on durable goods rose 0.3 percent in March and 0.7 percent in February after plunging 3.7 percent in January. Real spending on nondurable goods was unchanged in March and February. Real spending on services increased 0.1 percent in March after a 0.2 percent gain in February The figures released by the government Friday fill in some blank spots in the bigger picture unveiled on Thursday, adding monthly details to the quarterly data already known Real gross domestic product increased at a 4.2 percent annual rate in the quarter, with consumer spending rising at a 3.8 percent pace. Real disposable income had risen at a 7.7 percent annual pace in the quarter, but it was front-loaded into January when tax rates fell and wages and benefits spiked fxstreet.com