Friday, March 27, 2009

Consumption and Personal Income News not So Good

The media reports that consumption spending rose in February for the second straight month, but they are referring to nominal consumption. Real consumption (as well as real personal income) fell. The only good news I see from today's personal income report is that February real consumption is still above the December 2008 lows -- that is, the big January increase was not entirely reversed (alternatively, there was some truth to the January measure).

[Last month, somebody asked where to see the BEA releases: go to and look in the upper right corner].

1 comment:

stilettoheels said...

December & January real DPI revised down is bad. January real PCE revised up is good. The PCE price index is not so good.

News release is here.

Unless March real PCE falls off a cliff, Q1 real PCE should additive to Q1 GDP.