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 index – Year/Year  +1.5%.

The magnitude of the increase in Consumer Spending is somewhat inflated by the fact that the previous month saw a decrease because of Sandy.  The +3.5% increase in spending year/year is more telling.  Inflation remains well contained.

Durable Goods Orders  (November 2012)

– New Orders – Month/Month +0.7%
– Ex-transportation – Month/Month  +1.6%

DGO has increased in 6 of the last 7 months. DGO have been very bouncy lately and it would make sense to start looking at DGO as a 3 month moving average.  If you want the details feel free to peruse

Chicago Federal Reserve National Activity Index (November 2012)

– Index Level +0.10.  Previous was -.64
– 3 Month Moving Average -.20.  Previous was -.56

Consumer Sentiment  (December 2012)

– Index level is 72.9.  Previous was 74.5.

This is the University of Michigan sentiment survey index.

Markets today are reacting not to any of this but to the inability of the folks in D.C to compromise on the fiscal cliff issue.