Tuesday, June 30, 2009

A Closer Look At Personal Consumption Expenditures



Notice the following on the above chart:

1.) PCEs fell out of bed last year -- notice the high month over month and year over year drops.

2.) This year PCEs have returned to more "normal" month over month increases.

3.) The year over year number appears to be bottoming.

This is the same pattern retail sales have displayed. Consumers stopped spending last year and have now returned to the market in a more limited manner.