Personal Consumption Expenditures (Graph)

Personal Income and Outlays

• Personal income increased $19.3 billion, or 0.2 percent, 
• Disposable personal income (DPI) increased $15.5 billion, or 0.1 percent, 
• Personal consumption expenditures (PCE) increased $129.6 billion, or 1.3 percent.

To read the full text of the release go here.

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Consumers go into the Tank on all Fronts

According to the American Bankers Association, which represents most large U.S. banks and credit card companies, the percentage of consumer loans at least 30 days late rose to a seasonally-adjusted 3.22% in the October-to-December period from 2.9% in the prior quarter.

Home equity loan delinquencies rose 40 basis points to 3.03 percent of accounts, setting a new record. Home equity lines of credit delinquencies also reached a new record, rising 31 basis points to 1.46 percent. Every category saw rising delinquencies except mobile home loans. The ABA report defines a delinquency as a late payment that is 30 days or more overdue.

Credit card delinquencies also increased from 4.20 percent to 4.52 percent but still remain near the four year average of 4.47 percent. Chessen says the ability of card holders to adjust their monthly payments – unlike other loans with fixed payments – has helped keep credit card delinquencies relatively stable.

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The fourth quarter composite ratio is made up of the following closed-end loans. All figures are seasonally adjusted based upon the number of accounts.

• Home equity loan delinquencies increased from 2.63 percent to 3.03 percent.
  
• Property improvement loan delinquencies increased from 1.63 percent to 1.75 percent.
  
• Indirect auto loan delinquencies increased from 3.25 percent to 3.53 percent.
  
• Direct auto loan delinquencies increased from 1.71 percent to 2.03 percent.
  
• Marine loan delinquencies increased from 1.82 percent to 2.35 percent.
  
• RV loan delinquencies increased from 1.27 percent to 1.38 percent.
  
• Mobile home delinquencies decreased from 3.08 percent to 2.96 percent.
  
• Personal loan delinquencies increased from 2.69 percent to 2.88 percent.
  

Sources: Consumer loan delinquencies hit record high

CONSUMER DELINQUENCIES CONTINUE RISING AS RECESSION INTENSIFIES
IN FOURTH QUARTER 2008

Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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Personal Income and Expenditures (Numbers and Charts)

Personal Consumption Expenditures tick up. A positive factor for first Quarter GDP.



Personal income

• decreased $29.1 billion, or 0.2 percent
• disposable personal income (DPI) decreased $10.5 billion, or 0.1 percent

Personal consumption expenditures (PCE)

• increased $17.2 billion, or 0.2 percent. In January, personal
• income increased $20.5 billion, or 0.2 percent
• DPI increased $164.6 billion, or 1.6 percent
• PCE increased $94.8 billion, or 1.0 percent, based on revised estimates.

Real disposable income

• decreased 0.4 percent in February, in contrast to an increase of 1.3 percent in January.

Real PCE

• decreased 0.2 percent, in contrast to an increase of 0.7 percent.
  
• The price index for PCE increased 0.3 percent, the same increase as in January.

Source: Bureau of Economic Analysis (more details and pres release)

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Disposable Personal Income ticks up.

Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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Advice for Your Personal Finances

I caught this over on Greg Mankiw's Blog. Greg is a professor of economics at Harvard University. Click on the image to enlarge it for a better view.

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