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Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
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Monday, July 9, 2012

May 2012 Personal Income and Outlays, Retail Sales and Consumer Debt

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Bureau of Economic Analysis data showed that personal income increased $25.4 billion (0.2 percent), and disposable personal income (DPI) increased $18.5 billion (0.2 percent) in May. Personal consumption expenditures (PCE) decreased $4.7 billion, or less than 0.1 percent. Real (inflation-adjusted) DPI increased 0.3 percent while real PCE increased 0.1 percent.
 
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Consumers decreased spending on retail goods for the second month in a row during May (0.2 percent, seasonally adjusted), the first time that has happened in two years. If gas purchases are omitted, however, retail spending actually rose 0.1 percent. Sales at gas stations slumped 2.2 percent in May, the biggest retreat since December.

Auto sales rose 0.8 percent (seasonally adjusted). The increase was somewhat of a surprise since industry figures showed that total vehicle sales fell in May from April -- to a 13.7 million annual rate from 14.4 million. Excluding car sales, retail sales fell 0.4 percent.
 
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Total consumer debt outstanding jumped by a seasonally adjusted $17.1 billion (8.0 percent annualized). Revolving (mostly credit card) debt increased by $8.0 billion (11.2 percent annualized), while non-revolving debt (mainly student and auto loans) increased by $9.1 billion (6.5 percent annualized). In May, student loans comprised nearly two-thirds of the increase in non-revolving debt.
 
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