Economic Reports 09/28/07
Summary: Rather than provide an in depth analysis on the bulk of today's macro economic reports, we will attempt to focus on the important key factors.
Personal spending reflects a 7.2% stagflation rate and shows John Q getting strapped, with a large drop in non durable goods spending.
Chicago PMI showing mixed results, soft growth with employment declining to it lowest since April.
Private construction spending on non-residential buildings pushed overall construction spending.
Residential home building has now declined for 18 straight months and is at a 4 year low.
Worse yet, construction spending for key durable economic activities (manufacturing) has fallen off a cliff.
Mich Sentiment-Rev. Sep 83.4 vs prior 83.8
Personal Spending Aug +0.6% vs prior +0.4% Full Report
Inside the number: Personal Income Aug +0.3% vs prior +0.5%; ; Core PCE Inflation Aug +0.1% vs prior +0.1%.
Real PCE personal comsumption expeditures adjusted for price changes +0.6%, annual rate +7.2%. Non durable goods spending in chained 2000 dollars 0% vs prior +0.5%.
Chicago PMI Sep 54.2 vs prior 53.8 Full Report
Inside the number: Employment trending down from 53.7 to 52.0, the lowest level since April. Production rising but still soft 55.7 to 58.3.
New orders eased from 58.4 to 56.2. Prices paid eased substantially from 71.8 to 59.0.
Construction Spending Aug +0.2% vs prior -0.5% Full Report
Inside the number: Private non-residential spending, which includes hotels, office buildings and shopping centers, +2.3%.
Total private construction FLAT; YOY -6.1%. Private residential construction spending -1.5%; YOY -16.5%. New single family construction -3.3%; YOY -25.6%
In annual terms, since the Feb 06 peak, private residential construction spending has fallen $174 Billion.
And a harbinger of things to come in what remains of the broader durable economy...
Manufacturing construction +1%; YOY -6.9%. Food & Beverage -16.8%; YOY -41.7%. Plastic & Rubber -10.8%; YOY -27.9%. Computer, Electronic, Electrical -11.6%; YOY -56.4%
Personal spending reflects a 7.2% stagflation rate and shows John Q getting strapped, with a large drop in non durable goods spending.
Chicago PMI showing mixed results, soft growth with employment declining to it lowest since April.
Private construction spending on non-residential buildings pushed overall construction spending.
Residential home building has now declined for 18 straight months and is at a 4 year low.
Worse yet, construction spending for key durable economic activities (manufacturing) has fallen off a cliff.
Mich Sentiment-Rev. Sep 83.4 vs prior 83.8
Personal Spending Aug +0.6% vs prior +0.4% Full Report
Inside the number: Personal Income Aug +0.3% vs prior +0.5%; ; Core PCE Inflation Aug +0.1% vs prior +0.1%.
Real PCE personal comsumption expeditures adjusted for price changes +0.6%, annual rate +7.2%. Non durable goods spending in chained 2000 dollars 0% vs prior +0.5%.
Chicago PMI Sep 54.2 vs prior 53.8 Full Report
Inside the number: Employment trending down from 53.7 to 52.0, the lowest level since April. Production rising but still soft 55.7 to 58.3.
New orders eased from 58.4 to 56.2. Prices paid eased substantially from 71.8 to 59.0.
Construction Spending Aug +0.2% vs prior -0.5% Full Report
Inside the number: Private non-residential spending, which includes hotels, office buildings and shopping centers, +2.3%.
Total private construction FLAT; YOY -6.1%. Private residential construction spending -1.5%; YOY -16.5%. New single family construction -3.3%; YOY -25.6%
In annual terms, since the Feb 06 peak, private residential construction spending has fallen $174 Billion.
And a harbinger of things to come in what remains of the broader durable economy...
Manufacturing construction +1%; YOY -6.9%. Food & Beverage -16.8%; YOY -41.7%. Plastic & Rubber -10.8%; YOY -27.9%. Computer, Electronic, Electrical -11.6%; YOY -56.4%
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