Construction spending was at an annual rate of $986.2 billion during January 2009, a reduction of 3.3 percent from December. The January figure is 9.1 percent below the January 2008 estimate. (Bad news, no matter how well anticipated.)
Personal consumption expenditures increased $56.4 billion, or 0.6 percent, in January. Personal income increased $44.8 billion, or 0.4 percent, and disposable personal income increased $183.0 billion, or 1.7 percent. (Good news, even after allowing for special factors such as pay raises for federal civilian and military personnel and cost-of-living adjustments to several transfer payment programs.)
With only these two reports in hand, our diffusion index of the news delivered at the top sides of government reports on the economy starts the month of March off well at 50 percent good. The next few days, however, bring several reports (factory shipments and orders and the employment situation in particular) that may very well drive it back to roughly the February GNI (21.1).
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