Economic News - August 29, 2008

Personal Income and Outlays - July 2008

Personal Income: Down $89.9 billion (0.7%)

Financial Roadmap: The Week Ahead September 2 to 5, 2008

After relatively strong housing reports and an impressive showing in
the 2nd quarter GDP report last week, Fed watchers will be on alert for
any signs that could point to rate increases – especially in
Wednesday's release of the Federal Reserve Beige Book.

The dollar is poised to make gains against other currencies as US
growth ramps up and other economies, especially Western Europe, slow.

Consumer Spending Slowed in July

Consumer spending rose 0.2% in July, but adjusted for inflation outlays dropped
0.4%, suggesting the economy will weaken with the end of government
stimulus payments.

Consumer Spending in U.S. Slowed in July as Prices Rose Most in 17 Years

U.S. consumer spending grew at a
slower pace in July as the impact of the tax rebates faded and a
pickup in inflation eroded Americans' buying power.

Business Activity Expands at the Fastest Pace in Year, Chicago Index Shows

A measure of U.S. business activity
showed expansion at the fastest pace in more than a year, as
production accelerated the most since October 2004.

European Confidence Drops More Than Forecast; Inflation Rate Falls to 3.8%

Europeans' confidence fell more
than forecast this month as the economy teetered on the brink
of a recession.

Darling Says U.K. Economic Slowdown Is Worst in 60 Years, Guardian Reports

U.K. Chancellor of the Exchequer
Alistair Darling said the British economy is facing the worst
slowdown in 60 years and will not recover as quickly as
originally forecast, the Guardian reported.

Consumer spending flags, but confidence rises

WASHINGTON
(Reuters) - Personal income tumbled unexpectedly in July and
inflation-adjusted spending shrank as government economic stimulus
waned, but consumer spirits rose this month, a hint the economy may
muddle through its woes.

Canada skirts recession in second quarter

OTTAWA, Aug 29 (Reuters) - Canada's economy narrowly
avoided a recession in the second quarter but the tepid 0.3
percent annual growth rate raised doubts about how long the
Bank of Canada could afford to keep interest rates on hold.