Americans’ Income & Spending Rose More Than Expected In July (Before Handouts Stopped)
Fri, 08/28/2020 – 08:39
Analysts expected the trend of the last two months to continue in July with personal spending rebounding (though at a slower pace) and personal incomes shrinking back, but both surprised to the upside with a +0.4% MoM rise in incomes and +1.9% MoM jump in spending ( vs -0.2% and +1.6% respectively).
Incomes (thanks to govt transfers) are still up 8.2% YoY while spending remains down 2.8% YoY…
Private workers’ pay fell less than government workers’ pay in July on a YoY basis:
Private sector wages dropped -1.2% Y/Y, better than -2.7% last month
Government worker wages dropped -1.3%, better than -1.3% last month
Sending the savings rate lower (from 19.2% to 17.8%)…
Finally we note that The Fed’s favorite inflation indicator – Core PCE Deflator – re-accelerated in July, but at 1.3% remains well below any old or new mandate-driven level…
Bear in mind that this data – from July – was before the big handouts all stopped!
Zero Hedge’s mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information’s unending quest for freedom. Visit https://www.zerohedge.com