Government Handouts Spark January Surge In Personal Income
Thanks to government handouts starting to wash across the nation, analysts expected personal incomes to explode higher in January (and spending to rise after two declining months) and they were right. Personal incomes rose 10.0% MoM (better than the +9.5% expected) while spending rose 2.4% MoM (slightly worse than the +2.5% expected)….
Source: Bloomberg
Government workers wages and salaries were steady at -2.4% YoY while private workers saw wages and salaries accelerate from +1.8% YoY to +2.2% YoY…
On a year-over-year basis, spending remains down marginally (-0.4%) while incomes are up a stunning 13.1% YoY…
Source: Bloomberg
Of course, this transfer payment sent the savings rate soaring from 13.4% to 20.5%…
Imagine what that income chart will look like after Biden’s $1400 checks go out?
Tyler Durden
Fri, 02/26/2021 – 08:37
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