FTN on the Morning Data

October 30th, 2009 9:53 am | by John Jansen |

This morning’s data was as expected across the board. No change in September income, a 0.5% drop in September consumption and a 0.4% rise in the third quarter’s employment cost index were exactly on consensus.

Most of the weakness in September consumption was autos. But nondurable goods and service spending slowed, suggesting some weakness aside from just an auto-sales hangover. On the other hand, we know chain retailer sales were decent, suggesting some strength in durable goods ex-autos.

The ECI fell to a new low on a year-on-year basis, as the high unemployment rate gives employers the upper hand in wage negotiations.

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