DGO

Personal Spending Modestly Positive. Inflation Contained.

Personal Income and Outlays (November 2012) Personal Income – Month/Month +0.6%. Previous was +0.0%. Consumer Spending – Month/Month  +0.4%. Previous was -0.2% PCE Price Index — M/M  -0.2% Core PCE price index – Month/Month  +0.0% Personal Income – Year/Year  +4. % Consumer Spending – Year/Year +3.5% PCE Price Index — Year/Year +1.4% Core PCE price

Initial Jobless down. GDP, Durable Goods, and Pending Home Sales Weak.

Jobs Initial Jobless Claims (week ended 9/22/2012) – Initial Claims 359,000.  Previous revised up to 385,000 – 4-week Moving Average 374,000.  Previous was 378,500. This would be good news except for the following. GDP (2ndQ2012)   – 2ndQ2012 GDP was revised downward from +1.7% to +1.3%.  There are two distinct issues:  1) what is happening