The ISM Manufacturing Index for January rose to 35.6 from 32.9 in December, better than the 33.0 expected by economists. Most underlying components within the index showed the rate of change contracting at a slower pace. New orders improved to 33.2 from 22.7 in December and prices paid rose to 29.0 from 18.0. Employment was flat at 29.9.
Construction spending fell 1.4% in December, more than the forecast of a 1.2% decline, and November's drop was not worse than initially reported.
Personal income fell 0.2% in December, versus the estimate of -0.4%, and November was revised lower. Personal spending fell 1.0% in December, and a bit more than expectations of a 0.9% decline as the recession continued to encourage savings. The PCE Price Index, increased 0.6% in December, indicating that real spending declined 0.5%, after rising in November for the first time since May. The core PCE Price Index, which excludes food and energy, was flat. Year-over-year, core prices are up 1.7%.
