Personal Income +0.2%
Consumer Spending +0.1%
(Econoday.com) - Personal income, hurt by a sharp fall in rental income, rose a lower than expected 0.2 percent in January, the smallest rise since August and compared with a revised 0.3 gain in December.
But wages and salaries rose a healthy 0.5 percent due in part to lower taxes. Lower taxes also helped disposable income, which rose 0.8 percent.
Personal outlays rose a moderate and as-expected 0.4 percent in the month. Consumption of durable goods was down due largely to weak vehicle sales during the month. Consumption of non-durables and services was stronger.
The PCE price index (chained 2000 dollars) rose a mild 0.3 percent in January compared with a 0.2 percent gain in December and a 0.1 percent decline in November. The core PCE inched 0.1 higher in January. The savings rate came in at 1.8 percent vs. 1.4 percent in December and a 1.6 percent average over the prior months.
ISM Manufacturing Index 61.4%
(Econoday.com) - The ISM manufacturing index decreased roughly two points in February to 61.4 percent after recording a high level of 63.6 percent in January. The February level was about in line with expectations and should be neutral on today's market activity in the equity and bond markets. There is no question that the overall pace of manufacturing activity remained healthy for the month despite declines in the February index components from January levels. While new orders and production both decreased, employment jumped more than 3 points in February to 56.3 from a level of 52.9. It was the fourth month in a row in which the employment index stood well above the 50 percent mark which points to growth. We still haven't seen this translate into factory payroll gains however. The supplier delivery index, a component of the index of leading indicators, rose nearly two points in February. The sharpest gain came in the price index which gained 6 points to 81.5 in February! The price index now stands 20 percentage points above year ago levels.
Construction Spending -0.3%
(Econoday.com) - Construction expenditures fell 0.3 percent in January after an upward revised gain of 0.6 percent in December. This was slightly weaker than expected and could viewed in a negative light by equity investors, but could be friendly news for bond investors. Total private construction spending decreased 0.5 percent for the month, with no change in the residential sector, but a sharp 1.7 percent decline in non-residential construction. Declines were particularly sharp for office and commercial buildings. In the public sector, construction spending rose 0.2 percent as construction of educational buildings decreased 2.2 percent, but highway and street construction jumped 1.7 percent.
3-Month Bill Treasury Rate 0.940%
(Econoday.com) - The high rate for the 3-month bill auction edged up 1 basis to 0.940 percent, the highest rate of the quarter. The bid/cover ratio was a firm 2.09 vs. 2.14 last week (both $19 billion auctions).
6-Month Bill Treasury Rate 0.990%
(Econoday.com) - The high rate for the 6-month bill auction edged down 1/2 basis point to 0.990 percent but still at the upper end the quarter's range. The bid/cover ratio was a firm 2.23 vs. 2.46 last week (both $17 billion auctions). Modest pressure on the 6-month bill rate, and more so the 3-month rate, perhaps reflects an increasing risk of less accommodative Federal Reserve policy.
04.03.01 16:21 #