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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, September 10, 2012

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

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Bureau of Economic Analysis data showed that personal income increased $42.3 billion (0.3 percent), and disposable personal income (DPI) increased $39.9 billion (0.3 percent) in July. Personal consumption expenditures (PCE) increased $46.0 billion (0.4 percent). Real (inflation-adjusted) DPI increased 0.3 percent while real PCE increased 0.4 percent.
 
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The Census Bureau reported that consumers increased spending on retail goods during July (0.8 percent, seasonally adjusted). Interestingly, retail sales were up by an identical percentage across all categories. Excluding gasoline sales, retail spending also rose 0.8 percent from June to July.
 
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Total consumer debt outstanding fell by a seasonally adjusted $3.3 billion (1.5 percent annualized). Revolving (mostly credit card) debt decreased by $4.8 billion (6.8 percent annualized), while non-revolving debt (mainly student and auto loans) increased by $1.5 billion (1.0 percent annualized). For a change, in July federal student loans comprised less than one-third of the increase in non-revolving debt.
 
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The most prominent feature of the last two charts is the December 2010 spike. The Federal Reserve revised data from that month onward, but not prior data. That discontinuity in the series has created a firestorm of criticism.

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