In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Friday, June 30, 2006

Core PCE and Savings Rate

by Calculated Risk on 6/30/2006 09:57:00 AM

The BEA reports for May:

Personal income increased $38.3 billion, or 0.4 percent, and disposable personal income (DPI) increased $31.6 billion, or 0.3 percent, in May, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $40.3 billion, or 0.4 percent.
Core PCE increased 0.2 percent in May (2.6% annualized). Core PCE for May was below the April rate, but still above the high end of the FED's assumed target range (2%).

Click on graph for larger image.

The savings rate continued its downward trend. The savings rate, as a percent of DPI, was a negative 1.7%.

In the last post, the chart shows the quarterly savings rate. This post is the monthly savings rate. The Microsoft special dividend (Dec '04) and the impact of hurricane Katrina (Aug '05) are even more evident in the monthly chart.