by Bill McBride on 9/27/2012 08:50:00 PM
Thursday, September 27, 2012
The beatings continue in Europe ...
From the NY Times: Despite Public Protests, Spain’s 2013 Budget Plan Includes More Austerity
The Spanish government on Thursday presented a draft budget for 2013 with a package of tax increases and spending cuts that it said would guarantee the country could meet deficit-cutting targets agreed to with the rest of the euro zone.And from the NY Times: Greece Agrees on New Package of Budget Cuts and Taxes
The 2013 budget plan released Thursday is meant to help carry out a sweeping long-term austerity package outlined by Mr. Rajoy in July, which is aimed at reducing the central government’s budget deficit by 65 billion euros, or $84 billion, over two and a half years.
The plan involves an average cut of almost 9 percent in the spending of each government ministry next year. The salaries of civil servants will be frozen for a third consecutive year.
The government of Prime Minister Antonis Samaras must now present the proposed actions — $15 billion in cuts to pensions, salaries and state spending, and at least $2.6 billion in new taxes — for further discussion with the foreign lenders, who have demanded them in return for releasing the next portion of aid to the stricken country.On Friday:
The government did not release specifics of the agreement, though it is said to call for a rise in the retirement age to 67 from 65.
• At 8:30 AM ET, the Personal Income and Outlays report for August will be released. The consensus is for a 0.2% increase in personal income in August, and for 0.5% increase in personal spending. And for the Core PCE price index to increase 0.1%.
This will give us two months of data (July and August) to estimate consumer spending in Q3.
• At 9:45 AM, the Chicago Purchasing Managers Index for September. The consensus is for an increase to 53.1, up from 53.0 in August.
• At 9:55 AM, the Reuter's/University of Michigan's Consumer sentiment index (final for September). The consensus is for a reading of 79.0, down from the preliminary September reading of 79.2, and up from the August reading of 74.3.
A final question for the September economic prediction contest:
Posted by Bill McBride on 9/27/2012 08:50:00 PM