v.18 n. 35 – Released September 4, 2014
This Week’s Headlines:
- Income and Spending Weaker in July
- Events of Interest
- October 8, 2014: LAEDC Economic Forecast
- October 9-10, 2014: Southern California Energy Summit
- October 30, 2014: 26th Annual Southern California Visitor Industry Outlook Conference
- November 13, 2014: 19th Annual Eddy Awards Gala
Total personal income increased by just 0.2% in July after rising by 0.5% in June (revised). Total private wages and salaries were also up by 0.2% ($14.6 billion) over the month. Wages in goods producing industries edged up by 0.1%, while wages in service providing industries posted a gain of 0.2%. Wages and salaries in the public sector were up by 0.2%. Government transfers (social security, Medicare, Medicaid, unemployment insurance, veterans’ benefits) rose by 0.3% or $7.8 billion.
The distribution of wages and salaries by sector are an indication of the relative size of the goods producing versus service sectors in the U.S. economy. Total wages and salaries in July were nearly $7.5 trillion. Wages in the goods producing sector were about $1.3 trillion (17.3% of the total), while wages paid in the service providing industries were $5.0 trillion (66.7%). The public sector wage bill was $1.2 trillion (16.0%).
Real disposable income (income after taxes and adjusted for inflation) growth was even slower – rising by only 0.1% in July. Higher personal current taxes and inflation took a bigger bite out of real income in July.
Real consumer spending declined by 0.2%. Spending on durable goods dropped by 0.6% (after rising by 0.5% in June). A decline in purchases of motor vehicles and parts accounted for almost the entire drop. Spending on nondurable goods was down by 0.2%, while spending on services declined by 0.1%.
On a year-to-year basis:
- Real disposable income rose by 2.6%
- Real personal consumption expenditures also increased by 2.0%
- Growth in real spending on goods (2.7%) outpaced spending on services (1.7%)
The drop in consumer spending last month was accompanied by a jump in the personal saving rate. At 5.7%, American households tucked away the largest share of their income since the saving rate spiked in December 2012 at 10.5%. The average year-to-date saving rate in 2014 is 5.2% compared with 4.9% for all of 2013.
July proved to be a weak start for the third quarter. The higher saving rate may pave the way for a pickup in spending over the next several months, but whether households choose to spend or sit tight will depend on how they feel about the economic outlook over the second half of this year. Hopefully, the labor markets will continue to deliver jobs at pace similar to the first half of 2014. (Kimberly Ritter-Martinez)
Source: Bureau of Economic Analysis
October 8, 2014: LAEDC Economic Forecast
L.A. Hotel Downtown; 333 S. Figueroa St., Los Angeles 90071
Introducing a long-term look at the regional economy and innovation in education. Featured guest speakers: Timothy White, Chancellor California State University system and Dr. Robert A. Kleinhenz, Chief Economist, LAEDC.
October 9-10, 2014: Southern California Energy Summit
Palm Springs, CA (see event website for locations)
Join regional leaders from the Counties of Riverside, San Bernardino, Imperial, Inyo, Mono, Kern and Los Angeles to discuss the opportunities, challenges and solutions facing the various energy industries of Southern California. Learn from private and public sector leaders about how new programs, policy and trends that will affect your business and community. Explore interactive exhibits and discover new energy efficient and sustainable technologies.
October 30, 2014: 26th Annual Southern California Visitor Industry Outlook Conference
Hilton Anaheim; 778 W. Convention Way, Anaheim CA 92802 | 8:00 am to 4:00 pm
Please join us for the 26th Annual Southern California Visitor Industry Outlook Conference to be held at The Hilton Anaheim. Hear from noted experts, representing a range of travel sectors, offer their best assessment of the southern California economic situation and how it may affect your business.
All attendees receive an electronic copy of PKF Consulting’s 2015 Lodging Forecast. Parking is complimentary and attendees will be able to enjoy a continental breakfast buffet before the conference begins.
Attendees will also hear from our keynote speaker, Mr. Ed Fuller, the President and CEO of Orange County Visitors Association (OCVA) who will discuss the major industry changes in the world today focusing on the new Global market and why it is valuable. He will also offer insight on strategies for increasing Global Visitors and the challenges in this segment.
November 13, 2014: 19th Annual Eddy Awards Gala
The Beverly Hilton; 9876 Wilshire Blvd., Beverly Hills, CA 90210| 6:00 pm to 9:30 pm
The Eddy Awards® is one of the most prestigious awards programs to recognize leadership in economic development in business and government throughout Los Angeles County. The Eddy Awards®, a cocktail, dinner, and awards gala, also supports fulfillment of the Los Angeles County Economic Development Corporation’s mission to attract, retain, and grow businesses and jobs for the regions of Los Angeles County.