There was some very good news in June’s personal income report. Total wages and salaries rose 0.6% to another record high during the month. I am not surprised since it tracks the YRI Earned Income Proxy very closely, as I noted following the release of June’s employment report at the beginning of the month.
This augurs well for consumer spending in coming months, though such spending was unchanged during June. It was also encouraging to see that the Consumer Confidence Index rose during July to 65.9 from 62.7 in June. However, it was odd that the present situation component of this index ticked down given the strength of wages and salaries. Perhaps June’s headline news was unsettling and may have offset the improvement in paychecks. I still expect to see better retail sales figures over the next few months.
Today's Morning Briefing: From WIN to WIT. (1) Gerald, Mario, and Ben. (2) Words speak louder than actions. (3) Markets may be set up for let downs. (4) ECB and Fed committees polarized. (5) LTRO-3? (6) A ton of bricks weighing on BRICs. (7) An unsettling fortune cookie. (8) Profits swinging downwards in China. (9) India’s blackout and drought. (10) Wages and salaries are shining in US. (More for subscribers.)