Posted on 12/23/2003 10:35:57 AM PST by Starwind
CORRECTED - TABLE-U.S. Nov personal income rose 0.5 pct
Tuesday December 23, 10:05 am ET
In WASHINGTON table headlined "TABLE-U.S. Nov personal income rose 0.5 pct" please note the figures given for "Percent Changes, chained 2000 dollars" for personal consumption and consumption on durables and nondurables were incorrect. The figures given were changes in chained 2000 dollars not in percent. A corrected repetition follows. WASHINGTON, Dec 23 (Reuters) - U.S. Commerce Department personal income and spending estimates, in seasonally adjusted annual rates. Percent Changes, current dollars . Nov Oct Sept Aug Personal Income 0.5 0.2 0.3 0.2 Wages/Salaries 0.3 0.2 0.1 0.2 Disposable Income 0.5 0.3 -1.1 0.8 Personal Consumption 0.4 0.1 unch 0.9 Durables 1.1 -1.0 -1.7 3.1 Nondurables 0.3 0.1 0.1 1.4 Services 0.3 0.3 0.3 0.2 Saving Rate, pct 1.8 1.7 1.5 2.6 Percent Changes, chained 2000 dollars . Nov Oct Sept Aug Personal Consumption 0.5 0.1 -0.2 0.7 Durables 1.4 -0.7 -1.3 3.4 Nondurables 0.6 0.5 -0.6 0.7 Percent Changes, chained 2000 dollars . Nov Oct Sept Aug PCE Price Index -0.1 unch 0.2 0.2 Core PCE Price Index unch 0.1 unch unch Current Dollars, in billions . Nov Oct Sept Aug Personal Income 9,335 9,291 9,268 9,240 Wages/Salaries 5,137 5,120 5,111 5,105 Disposable Income 8,328 8,289 8,267 8,357 Personal Income by sector, current dollars, in billions . Nov Oct Sept Aug Manufacturing 672 669 669 667 Service Industries 3,221 3,208 3,201 3,199 Government 902 901 900 901 Proprietors' Income 884 868 865 858 Farm 34 27 21 21 Nonfarm 849 842 844 837 Personal Consumption 7,896 7,865 7,857 7,860 Durables 975 964 974 991 Nondurables 2,250 2,244 2,241 2,240 Services 4,671 4,657 4,642 4,630 FORECASTS: Reuters survey of Wall Street economists forecast: U.S. Nov personal income +0.4 pct U.S. Nov personal spending +0.7 pct HISTORICAL COMPARISONS/NOTES: The department on Dec. 10 issued annual benchmark revisions to its National Income and Product Accounts and gross domestic product. Starting with these revisions, the reference year for real personal income was changed to 2000 from 1996.
GDP is reported in two ways; nominal and chained dollar.
Nominal means in the actual dollar amounts as recorded during Q3 2003. Nominal amounts include price changes and so it is hard to tell did the economy actually produce more, or did the prices of the same or less stuff just increase.
Chained dollar is an adjustment that trys to factor out price changes and report a dollar equivalent amount that reflects how many goods or services were actually produced.
But it relies on some distorting assumptions that the BEA is now removing for the next quarters report.
Neither gives us a very clear picture, but personally, I believe the nominal measurements reflect reality more than chained dollar.
See the discussion between myself and boingo_temp on Manufacturing myths for more details.
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