Monday morning rundown...
* Personal income rose 0.7% in March, while spending gained just 0.3%. Income was a bit hotter than expected, spending a bit weaker. An inflationary indicator buried in the report called the core PCE was flat, vs. expectations for a 0.1% gain.
* The Chicago Purchasing Manager's Index took a header in April -- falling to 52.9 from 61.7 a month earlier. However, the inflation measure embedded in that report -- the "prices paid" subindex -- surged to 64.9 from 59.1 in March. That's the highest reading since August.
* It continues to be a tale of two construction markets -- with residential building weak and commercial building activity hanging in there. In March, private residential construction spending dropped another 1%, while private non-residential construction spending gained 2.4%. A few notable standout sectors: Hotel spending was up a hefty 13.2%, while spending on amusement facilities jumped 9.4%.
Treasuries are getting frisky on the weak growth figures, even though the inflation indicators were a mixed bag (one lower than expected, one higher than expected). The U.S. Long Bond was recently up 21/32, while 10-year Treasury yields were down 5 basis points to 4.64%.