Consumer Confidence Mich. & Feb Personal Spending
Summary: Consumer Confidence hits 16 year low as consumers retrench for the worst.
Spending growth slowest since 1991; wage growth negative; propreitor business and rental income tanks.
Mich Sentiment-Rev. Mar 69.5 vs prior 70.5 Full Report
Inside the number: Richard Curtin, the director of the survey:
"A recession has occurred whenever the sentiment index has declined as much as it has fallen during the past year."
Among respondents, 86% said the economy has already slipped into recession.
Consumers have adopted "much more cautious spending plans, shifting more toward repaying debts and rebuilding their savings."
"continued constraints on the availability of credit, the impact of declines in home values, weaker job and income growth, and high food and fuel prices.
Financial distress was widespread in March. More households reported that their financial situation had worsened than anytime since 1991,
and more consumers cited high fuel and food prices as the primary cause for their financial distress than anytime since 1982.
Declines in home values were reported more frequently than anytime in the past twenty years. (When the question was first asked). "
Personal Spending Feb +0.1 % vs prior +0.4% Full Report
Inside the number: Personal Income Feb +0.5% vs prior +0.3%. Core PCE Inflation Feb +0.1% vs prior +0.3%.
Meaning: Real disposable income chained 2000 dollar +0.3%; real spending FLAT. Adjusted for prices, hourly earnings for the 12 months through February fell 0.8%.
The economy, going in the tank: Farm proprietors' income -$3.2 billion vs -$3.4 billion. Nonfarm proprietors' income -$2.7 billion vs +$9.0 billion in January.
Table 5: Proprietors income has negative growth in 4 of the last 7 months. Rental income Jan -4.8%; Feb -5.3%. Personal Interest Income 5 straight months negative.
PCE Q407 +6.3% Durable +0.3%; Non Durable +8.4%; Services +6.4%;
Table 11: Non Durable Goods % Change from 1 year ago; 4th straight month above +6%; Durable goods % change; negative 8 straight months.
Table 7: Non durable negative 3rd straight month -3.5%;
The Nattering One muses.. it gets better in Making the Kool Aid...
Spending growth slowest since 1991; wage growth negative; propreitor business and rental income tanks.
Mich Sentiment-Rev. Mar 69.5 vs prior 70.5 Full Report
Inside the number: Richard Curtin, the director of the survey:
"A recession has occurred whenever the sentiment index has declined as much as it has fallen during the past year."
Among respondents, 86% said the economy has already slipped into recession.
Consumers have adopted "much more cautious spending plans, shifting more toward repaying debts and rebuilding their savings."
"continued constraints on the availability of credit, the impact of declines in home values, weaker job and income growth, and high food and fuel prices.
Financial distress was widespread in March. More households reported that their financial situation had worsened than anytime since 1991,
and more consumers cited high fuel and food prices as the primary cause for their financial distress than anytime since 1982.
Declines in home values were reported more frequently than anytime in the past twenty years. (When the question was first asked). "
Personal Spending Feb +0.1 % vs prior +0.4% Full Report
Inside the number: Personal Income Feb +0.5% vs prior +0.3%. Core PCE Inflation Feb +0.1% vs prior +0.3%.
Meaning: Real disposable income chained 2000 dollar +0.3%; real spending FLAT. Adjusted for prices, hourly earnings for the 12 months through February fell 0.8%.
The economy, going in the tank: Farm proprietors' income -$3.2 billion vs -$3.4 billion. Nonfarm proprietors' income -$2.7 billion vs +$9.0 billion in January.
Table 5: Proprietors income has negative growth in 4 of the last 7 months. Rental income Jan -4.8%; Feb -5.3%. Personal Interest Income 5 straight months negative.
PCE Q407 +6.3% Durable +0.3%; Non Durable +8.4%; Services +6.4%;
Table 11: Non Durable Goods % Change from 1 year ago; 4th straight month above +6%; Durable goods % change; negative 8 straight months.
Table 7: Non durable negative 3rd straight month -3.5%;
The Nattering One muses.. it gets better in Making the Kool Aid...
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