Personal spending shows consumers OK; durable goods shows producers still struggling This morning’s reports on personal income and spending continue to show a consumer that is doing alright. Meanwhile durable goods orders continue to show a production sector that is struggling. First, real personal income (red in the graph below) rose +0.4% in August, while real personal spending rose +0.1%. Since July spending (blue) was revised down -0.1%, the result was a wash: The rising trend remains intact. In general, spending has slightly lagged income in the past few years. Thus the personal saving rate has increased: Overall the savings rate has increased since before the Great Recession, meaning that households are being more cautious with spending.
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NewDealdemocrat considers the following as important: US/Global Economics
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Personal spending shows consumers OK; durable goods shows producers still struggling
This morning’s reports on personal income and spending continue to show a consumer that is doing alright. Meanwhile durable goods orders continue to show a production sector that is struggling.
First, real personal income (red in the graph below) rose +0.4% in August, while real personal spending rose +0.1%. Since July spending (blue) was revised down -0.1%, the result was a wash: