Economic Reports 11/30/07

Summary: Happy Daze headline sez income & spending up, adjusting for price changes, real personal income & spending both negative.

Despite lower durables costs through outsourcing and labor at the margin, durables spending went through the floor. Meanwhile energy based stagflation raged on with non durables prices jumping.

Chicago PMI showed a work off of backlog through increased costs for inputs and additional employment, cutting margins, with new orders staying flat.

The housing debacle continues with private residential and SFR construction spending tanking and taking non residential commerical along with it into negative double digits.

Personal Income Oct -+0.2% vs prior +0.4% Full Report

Inside the number: Personal Spending Oct +0.2% vs prior +0.3%. Chained 2000 dollars: Real DPI income -0.1% vs prior +0.2%; Real PCE Spending -0.1% vs prior +0.1%.

Durable goods -0.6% vs +0.7%; Non Durable -0.1% vs +0.3%; Services +0.1% vs -0.2%. Core PCE Inflation Oct +0.2% vs prior +0.2%

PCE for durables crashing despite lower prices from labor at the margin, while stagflation and consumer pullback exhibited in non durables.

In current dollars Table 3: PCE change in billions July +37, Aug +36.4, Sept +33, Oct +23.

In Chained 2000 dollars Table 7: PCE Aug +34.2, Sept +5.7, Oct -2.9. Durable Aug +30.5; Sept +8.7; Oct -7.1.

Table 11 YOY % Change: PCE Aug +1.8%; Sept +2.4%; Oct +2.9%. Durables -2.2%; -1.9%; -1.8%. Non Durables +1%; +2.8%; +4.5%.

Chicago PMI Nov 52.9 vs prior 49.7 Full Report

Inside the number: Prices paid up to 76.2 from 74.7; Employment up 54.4 from 49.5; New orders flat at 53.9.

Construction Spending Oct -0.8% vs prior +0.3% Full Report

Inside the number: YOY -0.6%. Residential -2%; YOY -15.8%. Private Residential -1.4%; YOY -16.2%. Commerical Construction Nonresidential YOY -14.3%. New SFR -4%; YOY -26.4%

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