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Incomes Rise, But Spending Dips
1Personal incomes rose 0.4% in Dec., led by a 0.6% climb in wages, a clue the labor market may be stabilizing. Personal spending fell 0.2%. As 0% auto financing fades, the loss of car sales weighs on results. The PCE deflator, a key inflation gauge, fell 0.2%. The savings rate rose to 1% from Nov.'s 0.5%. Year over year, incomes rose 2.7% and spending climbed 3.6%. More on this page
Manufacturing Decline Slowing
2ISM's Chicago Purchasing Managers index rose to 45.1 in Jan. from 41.5 in Dec. It's better, but Midwest manufacturing still shrank for the 18th straight month. The production index rose to 50.4, its first gain since Dec. '00. Other areas stayed below the critical 50 mark. The orders index rose to a 16-month high of 48.7 in Jan. from 44.6 in Dec. That showed easing cost pressures.
Job Market Weak, But Improving
3New jobless claims rose 30,000 to a seasonally adjusted 390,000 for the week ended Jan. 26, the fourth straight week claims stayed below the 400,000 recession level. The four-week moving average,which takes out weekly volatility, fell 15,250 to 386,000, the lowest since Aug. 18. Continuing claims for the week ended Jan. 19 rose to 3.38 mil from 3.36 mil the prior week.
Markets Enjoy Another Nice Day