Economic Reports 06/29/07
Summary: Its a beautiful day in the neighborhood, won't you be my neighbor.... Hi kids! You want the truth, but can ya handle it?
Consumer sentiment still at 10 month low. Real personal spending, income and savings declining.
PCE spending evidences raging stagflation which is in the Fed's "comfort zone".
Chicago PMI slipping and residential construction spending plummeting for the 3rd straight month.
Mich Sentiment-Rev. Jun 85.3 vs prior 83.7
Inside the number: the index remains at a 10 month low. Richard Curtin, the director of the Reuters/University of Michigan surveys of consumers:
"High gas prices have squeezed household budgets, forcing consumers to cut back on other spending, to increase their debt or to reduce their savings."
Where on earth did Mr. Curtin find that dirty little devil?
He, unlike the media spinsters which puke out nothing but pablum for the average Joe's consumption...
must have actually read the details in today's other economic reports.
Core PCE Inflation May +0.1% vs prior +0.1% Full Report
Inside the number: Headline splash core inflation tame +0.1% moving into the Fed's comfort zone...
Meanwhile back in the REAL WORLD, PCE including food & energy +0.5%, the largest gain in 13 months and on track for an advertised 6% plus annual rate.
Are you sitting down??? You better before you see these heinous numbers...
PCE annualized % increase Q406 to Q107: +7.8%; durable goods +6.7%; non durable +8.4%; services +7.8%.
Can't wait for them to skyrocket the rest of this year as oil pushes over $70. The Fed's "comfort zone" has me all warm and fuzzy, how bout you kids?
Personal Spending May +0.5% vs prior 0.5%
Inside the number: Real spending: see stagflation... durable goods +0.6%; non durable goods +0.2%.
See a pinched consumer... services -0.1%; and adjusted for inflation, overall spending a tepid +0.1% for the 3rd straight month.
Personal Income May +0.4% vs prior -0.1%
Inside the number: tax adjusted for inflation income falling -0.1%.
Its just getting better all the time for all them sharecroppers.... inflated spending +0.5%; real income -0.1%; personal savings -1.4%.
Chicago PMI Jun 60.2 vs prior 61.7 Full Report
Inside the number: production down 66.5 vs 69.8; new orders down 65.7 vs 71.1; backlogs down 50.8 vs 53.
Inventories up 55.9 vs 52.6; capital equipment spending down 101.3 vs 125.2, the lowest in 2 years; employment down 52.7 vs 57.3
Comments: "Higher energy costs continue to drive raw material costs as well as processing costs."
"Job market seems to be slow and clients are finding labor cheap."
"Deals are being bought not sold."
"Residential housing market affecting the economy."
Construction Spending May +0.9% vs prior +0.1% Full Report
Inside the number: Short and sweet... headline splash sez construction spending JUMPED... the increase on private non residential +2.7% and public construction +2.2%.
Meanwhile, what really matters: private residential construction spending continues to plummet -0.8% vs prior -0.4%. YOY -17.6%; YTD - 18.5%.
Consumer sentiment still at 10 month low. Real personal spending, income and savings declining.
PCE spending evidences raging stagflation which is in the Fed's "comfort zone".
Chicago PMI slipping and residential construction spending plummeting for the 3rd straight month.
Mich Sentiment-Rev. Jun 85.3 vs prior 83.7
Inside the number: the index remains at a 10 month low. Richard Curtin, the director of the Reuters/University of Michigan surveys of consumers:
"High gas prices have squeezed household budgets, forcing consumers to cut back on other spending, to increase their debt or to reduce their savings."
Where on earth did Mr. Curtin find that dirty little devil?
He, unlike the media spinsters which puke out nothing but pablum for the average Joe's consumption...
must have actually read the details in today's other economic reports.
Core PCE Inflation May +0.1% vs prior +0.1% Full Report
Inside the number: Headline splash core inflation tame +0.1% moving into the Fed's comfort zone...
Meanwhile back in the REAL WORLD, PCE including food & energy +0.5%, the largest gain in 13 months and on track for an advertised 6% plus annual rate.
Are you sitting down??? You better before you see these heinous numbers...
PCE annualized % increase Q406 to Q107: +7.8%; durable goods +6.7%; non durable +8.4%; services +7.8%.
Can't wait for them to skyrocket the rest of this year as oil pushes over $70. The Fed's "comfort zone" has me all warm and fuzzy, how bout you kids?
Personal Spending May +0.5% vs prior 0.5%
Inside the number: Real spending: see stagflation... durable goods +0.6%; non durable goods +0.2%.
See a pinched consumer... services -0.1%; and adjusted for inflation, overall spending a tepid +0.1% for the 3rd straight month.
Personal Income May +0.4% vs prior -0.1%
Inside the number: tax adjusted for inflation income falling -0.1%.
Its just getting better all the time for all them sharecroppers.... inflated spending +0.5%; real income -0.1%; personal savings -1.4%.
Chicago PMI Jun 60.2 vs prior 61.7 Full Report
Inside the number: production down 66.5 vs 69.8; new orders down 65.7 vs 71.1; backlogs down 50.8 vs 53.
Inventories up 55.9 vs 52.6; capital equipment spending down 101.3 vs 125.2, the lowest in 2 years; employment down 52.7 vs 57.3
Comments: "Higher energy costs continue to drive raw material costs as well as processing costs."
"Job market seems to be slow and clients are finding labor cheap."
"Deals are being bought not sold."
"Residential housing market affecting the economy."
Construction Spending May +0.9% vs prior +0.1% Full Report
Inside the number: Short and sweet... headline splash sez construction spending JUMPED... the increase on private non residential +2.7% and public construction +2.2%.
Meanwhile, what really matters: private residential construction spending continues to plummet -0.8% vs prior -0.4%. YOY -17.6%; YTD - 18.5%.
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