March Proves to Be a Good Month for Consumers

James Picerno submits: Personal income and spending rose in July, the Bureau of Economic Analysis reported today. By the deflated standards of late, that's good news. Indeed, disposable personal income (DPI) and personal consumption expenditures (PCE) gained 0.2% and 0.4%, respectively, vs. a flat performance in June. That's encouraging, as these things go in the summer of 2010.

By James Picerno: The assumption by some economists that consumer spending and income is "rolling over" took a blow in Friday's February update from the Bureau of Economic Analysis. Disposable personal income (DPI) increased a respectable 1.1% last month while personal consumption expenditures (PCE) advanced 0.7% in February, or the most in five months.

By James Picerno: Disposable personal income (DPI) in December surged by 2.7% compared with November's level, although the gain "was boosted by accelerated and special dividend payments to persons and by accelerated bonus payments and other irregular pay in private wages and salaries in anticipation of changes in individual income tax rates," the government advises.

James Picerno submits: Is the sluggish economy finally inspiring consumers to implement a self-imposed round of personal austerity? It looks that way after reading today’s update of personal spending and income for May. Disposable personal income rose modestly by 0.2% last month, matching April’s gain and posting the eighth straight monthly increase.

James Picerno submits: Today’s personal income and spending update for January looks like a warning of things to come, but not for the obvious reasons. The weasel in the henhouse is all the more troubling at the moment since it’s masked by the all-important topic of consumer spending, which rose substantially last month. Beneath this rosy surface, however, is a potentially troubling trend.

The Bureau of Economic Analysis report on Personal Income and Outlays for January shows a 4% decline in real disposable income (the biggest drop in 20 years) following sharp gains in December. Personal Consumption Expenditures (PCE) eked out a .1% month-over-month gain. Personal Income and Outlays, January 2013

Disposable personal income (DPI) and personal consumption expenditures (PCE) increased in December, the Bureau of Economic Analysis reports. The update marks the sixth straight monthly rise in PCE and the third consecutive gain for DPI.

James Picerno submits: Today's spending and income report for August is no silver bullet, but it suggests that the risks of recession and deflation have fallen for the immediate future. The economy, in other words, appears stronger than it appeared over the summer.