|
 |
Apr-30-2011US Incomes And Spending Kept Rising In March(topic overview)
CONTENTS:
- The increase was slightly better than the average analyst estimate of 0.5 percent increase in consumer spending, a key driver of the U.S. economy. (More...)
- After adjusting for higher inflation, much of it caused by the spike in gasoline prices, spending rose a smaller 0.3 percent. (More...)
- Americans' incomes grew 0.5% in Marchand are up 5.0% from a year agoas the economy has recovered and started adding jobs at a faster pace, the Commerce Department said Friday. (More...)
- The personal savings rate was 5.5 percent in March, unchanged from February. (More...)
- WASHINGTON -- Americans likely saw their take-home pay rise in March, helped by a Social Security tax cut. (More...)
- Economists had been expecting a steeper fall-off, with only a 2 percent increase previously projected. (More...)
- Separately, consumer sentiment rebounded slightly at the end of April, according to a report released Friday, while inflation expectations remained steady. (More...)
Selected Sources
Find out more on this subject
The increase was slightly better than the average analyst estimate of 0.5 percent increase in consumer spending, a key driver of the U.S. economy. "Consumers continue to growth their spending despite rapidly rising gasoline prices and confidence that has suffered since gasoline prices started rising," said Scott Hoyt at Moody's Analytics. "That said, real spending growth was modest, lagging its fourth-quarter pace in both March and the first quarter as a whole." [1] Friday's data come on the heels of a report Thursday that showed U.S. gross domestic product growth slowed to a 1.8% pace in the first quarter of 2011 from 3.1% in the previous three months, in part because consumer spending slowed. While the lower growth and spending mark a setback for the recovery, many economists say they believe the slowdown will prove temporary. [2]
The latest quarterly Associated Press economic survey found economists forecasting that the first three months of the year will represent the slowest period of the year. They expect the economy will grow at a 3 percent rate for the rest of the year. These analysts are forecasting that consumer spending will grow 2.8 percent this year. While that is weaker than they had expected three months ago, it would be about twice the growth in spending last year. [3] Consumer spending is 70 percent of the economy ''' the spending slowdown was a central factor in economic growth, falling to 1.8 percent in the first three months of the year, well behind the 3.1 percent rate in the final quarter of 2010.'' [4]
After-tax incomes, adjusted for inflation, actually fell 0.1 percent. Economists had expected stronger gains in consumer spending this year, helped by stronger employment growth and the tax cut. Economists have scaled back their growth forecasts because of the rise oil prices. [3] The consensus view of economists surveyed by FactSet is that consumer spending rose 0.5 percent in March while personal incomes increased 0.4 percent. [3] WASHINGTON, April 29 (Xinhua) -- U.S. consumer spending and personal income both increased in March, a sign of continuing economic recovery, reported the Commerce Department on Friday. [5] U.S. consumer spending increased by 0.6% in March from February, rising for the ninth straight month, the Department of Commerce said. This compares with an upwardly revised 0.9% advance in February. It was helped by an increase in personal incomes. [6] The U.S. Commerce Department revealed that personal income increased by $67 billion, or 0.5 percent, in March. This followed an upwardly revised 0.4 percent increase in February. This figure was revised higher from initial estimates of 0.3 percent. [7] Personal incomes increased 0.5 percent in March from the previous month, and February's figure was revised upward to 0.4 percent, the Commerce Department reported Friday. [4]
The Commerce Department'''s Bureau of Economic Analysis said personal incomes rose 0.5 percent in March. [8]
Adjusted for inflation, the Commerce Department's spending price index rose 0.4 percent in March, the same as in February. [1] The Commerce Department reported today that consumer spending for March was better than expected ''' given the high cost of gasoline ''' rising 0.6 percent in current dollar terms. [9] The Commerce Department said consumer spending increased 0.6 percent, rising for a ninth straight month, after an upwardly revised 0.9 percent advance in February. [10] Spending rose a seasonally adjusted 0.6 percent after an upwardly revised rise of 0.9 percent in February, the Commerce Department said. [1]
Consumer spending increased 0.6 percent after rising by an upwardly revised 0.9 percent in February. [4] The 0.6 percent increase in consumer spending was attributable to increased gas and grocery prices, the report said. [8] The 0.6 percent increase in consumer spending was led by higher prices we'''re paying for gas and groceries. [11]
Consumer spending accounts for about 70% of the economy. A number of economists expect that such gains were undermined by recent increases in the price of gas and groceries. [12]
Rising gasoline and food prices lifted consumer spending in March and the increase in overall inflation from a year-ago was the largest in 10 months, government data showed on Friday. [10] WASHINGTON (Dow Jones)--Americans' incomes grew at a solid pace last month and a gauge of consumer sentiment rose in April, boding well for spending amid continued pressure from high gasoline and food prices. U.S. labor costs, meanwhile, posted their sharpest gain in a year in the first quarter, another sign that Americans with a job are poised to spend more. [13] Consumer spending for the first quarter overall, slowed to a 2.7 percent pace from a 4 percent pace in the fourth quarter of 2010. [9] The government reported on Thursday that consumer spending grew at a 2.7 percent annualized rate in the first quarter after a 4 percent increase in the final three months of 2010. [10]
The Department of Commerce reports consumer spending also increased by 0.6% in March, compared to February. Such an increase marks the continuation of an upward trend, and the rising of consumer spending for the ninth straight month. [12] Personal spending rose in March, according to a Commerce Department report released in Washington Friday, but it wasn'''t like consumers had much choice. [11]
WASHINGTON — U.S. consumer spending slowed in March even as Americans saw a slight rise in income, official data showed Friday. [1] Consumer spending accounts for 70 percent of the total U.S. economic activity, and experts expect the rebound of consumption will strengthen the economic recovery in 2011. [5] Consumer spending is a crucial part of the U.S. economy and accounts for about 70% of economic activity. [6]
Consumer spending is important because it accounts for about 70 percent of economic activity. [3]
Economists polled by Reuters had expected spending, which accounts for about 70 percent of U.S. economic activity, to rise 0.5 percent in March after a previously reported 0.7 percent rise. [10] The rise in spending, though less than the 0.9 percent increase in February, was still greater than the 0.5 percent increase most economists had predicted. [7]
The increase in income seems also to have translated to an increase in spending, with personal consumer expenditures increasing by $60.7 billion, a 0.6 percent increase. [14] The savings rate among U.S residents remained largely unchanged from February to March, with the personal savings rate, as measured by disposable income less spending, remaining at 5.5 percent. [7] Last month, the U.S. savings rate, personal saving as a percentage of disposable personal income, kept unchanged at 5.5 percent. It is well above the 2.1 percent average savings rate for all of 2007. [5] Americans' personal savings rate held steady at 5.5 percent of disposable personal income. [1]
Personal income growth was 0.5 percent in March, while disposable personal income grew a more robust 0.6 percent. Both income and disposable income rose 0.4 percent in February. [1] Disposable personal income increased 67.0 billion U.S. dollars, or 0.5 percent in March, said the department. [5]
Most economists had forecast a slightly slower increase in March personal income of 0.3 percent. [7] In February, spending jumped 0.7 percent and personal incomes increased 0.3 percent. [3] The core price index for personal spending, excluding volatile sectors like food and energy, increased by only 0.1 percent. [7] High food and energy prices kept inflation elevated last month, with the personal consumption expenditures price (PCE) index up 0.4 percent after rising by the same margin in February. [10]
Prices rose 0.4 percent in March, a closely watched figure by the Federal Reserve, but excluding volatile food and energy prices, costs were up about 0.1 percent and are about 1.8 percent higher than last year, safely within the Fed's range.'' [4]
Excluding food and energy, the core price index edged up 0.1 percent after a 0.2 percent gain the prior month. [1] The core PCE index -- excluding food and energy - slowed to a 0.1 percent increase after rising 0.2 percent in February. [10]
Compared to March last year, the index was up 1.8 percent - the largest increase since May - after rising 1.6 percent in February. [10] On an annual basis, the price index has been trending higher since a November 1.0 percent reading and hit 1.8 percent in March. [1]
The core index, which is closely watched by Federal Reserve officials, increased 0.9 percent in the 12 months through March. [10] The core index held steady at a 0.9 percent rise from a year ago. The Federal Reserve said Wednesday its comfort zone for the annual inflation rate was between 1.7 percent and 2.0 percent. [1]
After adjusting for higher inflation, much of it caused by the spike in gasoline prices, spending rose a smaller 0.3 percent. [3] The moderation in spending was not as sharp as economists had feared, suggesting that consumers were somewhat adapting to the high commodity prices, but could face a litmus test should gasoline prices shoot above $4 a gallon. [10] Gasoline prices nationally are now around $3.89 a gallon, up 30 cents in just a month. The AP survey found that economists believe those prices will drop to around $3.50 by fall. The Social Security tax will give most households an additional $1,000 to $2,000 this year. [3]
The labor market is improving while companies continue to spend and invest. Prices for food and gasoline have gone up sharply in recent months, but those prices tend to be volatile and many economists say the increases will moderate soon. [2]
The increase in spending seems driven less by demand for goods than by high energy and food prices. [7] Consumers' paychecks continued to inch up in March, but rising gas and food prices have individuals spending more on staples. [2] Consumers spent and earned more in March, but rising gas and food prices are absorbing most income gains. [4]
Futures markets are predicting gas prices will come down in the next few months, and Friday's income data showed prices excluding food and gasa gauge of underlying inflationincreased just 0.1% in March, and 0.9% from a year ago. [2]
Americans' incomes grew 0.5% in Marchand are up 5.0% from a year agoas the economy has recovered and started adding jobs at a faster pace, the Commerce Department said Friday. They also had more to spend: Their after-tax income increased 0.6% from a month earlier. [2] The Commerce Department reported Thursday that gross domestic product growth slowed sharply to a 1.8 percent annual pace in the January-March period from a 3.1 percent rate in the fourth quarter. [1] The 1.8 percent annual growth rate for the January-March quarter was weaker than the 3.1 percent growth in the final three months of 2010. [3]
The personal savings rate was 5.5 percent in March, unchanged from February. [8] Personal consumption expenditures gained 60.7 billion U.S. dollars, or 0.6 percent in March, lower than the 0.9 percent increase in February. [5] A separate report showed Travis County residents lost significant wealth during the recession, with total per capital personal income falling about 3.6 percent in 2009 to about $40.5 billion. [8] Adjusting for inflation, spending grew only 0.2 percent and after-tax incomes were nearly flat, according to the report.'' [4] When adjusted for inflation, spending edged up 0.2 percent last month after rising 0.5 percent in February. [10]
The purchase of cars and other durable good were flat while spending on services increased to 0.5 percent.'' [4]
Consumer spending increased 0.6% in March, the report said, but was up just 0.2% when adjusted for inflationless than half the 0.5% gain in February. [2] Analysts believe the rising cost of food and higher energy prices are affecting the consumer spending data. [6] Improvement in consumer spending hinges on continuing improvement in the labor market, which is recovering in fits and starts. Workers also are taking home a little more of their paychecks because of a temporary cut in Social Security taxes, but rising prices are soaking up most of that extra cash, too. [4]
"What we are seeing is that the nominal spending is rising, but the concern is that a large share of income is going to meet higher prices. "I think this trend will continue, and we have not seen the peak in gasoline. This sets the stage for weaker consumption in the second quarter". [6] Spending for nondurable goods, which includes gasoline, contributed to the increase, with a 0.9 percent gain.'' [4] The rise in spending corresponds to a slight increase in Americans''' income. [9] The spending and income data were already enmeshed in the government's initial estimate of first-quarter economic activity. [1]
Friday's report also showed that February spending had been even higher than initially reported. [7] The report showed inflation pressures remained subdued as the economy struggles to gain traction in a weak recovery from the worst recession in decades. [1] The Federal Reserve is likely to pause before making any changes to monetary policy when its bond-buying program ends in June, but a stronger economy and rising inflation could lead the central bank to start tightening credit by the end of 2011, Federal Reserve Bank of St. Louis President James Bullard said in an interview. [2]
The government reported Thursday that the overall economy slowed sharply in the first three months of the year. [3] U.S. GDP figures for the first three months of the year are expected to show growth has slowed down. [6]
WASHINGTON -- Americans likely saw their take-home pay rise in March, helped by a Social Security tax cut. About half of the tax break is being eaten up by the higher prices they are paying to fill up their cars, leaving less money to spend on other items. [3] The Thomson Reuters/University of Michigan consumer-sentiment index increased to 69.8 at the end of April from a preliminary April reading of 69.6 and 67.5 at the end of March. [2]
Economists had been expecting a steeper fall-off, with only a 2 percent increase previously projected. [9] Economists have estimated that one-half to two-thirds of that extra cash will ultimately go toward higher gas prices. Most people don't have the luxury to spend less on fuel because they use their cars to commute to work. It means they have less to spend on other items. [3]
Separately, consumer sentiment rebounded slightly at the end of April, according to a report released Friday, while inflation expectations remained steady. [2] The advance was revised up to 0.9 percent from the 0.7 percent that was originally reported last month. [7]
SOURCES
1. AFP: US consumer spending slows in March
2. U.S. Incomes Rise, Spending Slows - WSJ.com
3. Ahead of the Bell: Consumer spending - Forbes.com
4. Consumer spending, incomes rise in March - The Hill's On The Money
5. U.S. consumer spending, personal income rise in March
6. BBC News - US consumer spending boosted by rise in personal income
7. Personal Income And Spending Rise In March
8. U.S. personal spending, incomes rise | Austin Business Journal
9. Growth Slows in Consumer Spending | March 2011 Commerce Department Consumer Spending Report | Area Development Online
10. Consumer spending and income rise in March - International Business Times
11. Personal spending, incomes rise | Washington Business Journal
12. 1250 AM WTMA: The Big Talker | News and Talk from Charleston, South Carolina
13. UPDATE: US Incomes And Spending Kept Rising In March - WSJ.com
14. U.S. Personal Income Up 0.5% In March, Beating Expectations
GENERATE A MULTI-SOURCE SUMMARY ON ANY SUBJECT IN SECONDS! - Use a bunch of the powerful iResearch Reporter tools from Power Text Solutions.
Try out this innovative free service today! |
|  |
|
