Friday , December 9 2022
Home / Mosler Economics / Personal spending

Personal spending

Summary:
Consumer spending revised down for last month. Seems best to wait for at least the first revision before commenting.;) And still waiting for the consumer to spend his gas savings?;) United States : Personal Income and Outlays HighlightsBecause of a glitch at the Bureau of Economic Analysis, the personal spending portion of the personal income & spending report was posted early. Personal spending rose an as-expected and very respectable 0.3 percent in November with October revised 1 tenth lower to no change. Spending on durables was strong in the month, up 0.7 percent following a 0.3 percent dip in the prior month. Nondurables spending rose 0.5 percent while services, the largest spending component, rose 0.2 percent. The remainder of the report will be posted as scheduled at 8:30 a.m. ET tomorrow morning. This is not adjusted for inflation, but there hasn’t been much change in inflation for quite a while before the latest dip in headline inflation. And note that given the size of the collapse in 2008 the subsequent growth has been that much more anemic:This one is inflation adjusted, and has turned down in the last year.

Topics:
WARREN MOSLER considers the following as important:

This could be interesting, too:

John Quiggin writes Jefferson rejected even voluntary emancipation

Dan Crawford writes Open thread Dec. 6, 2022

Editor writes Knowledge and growth

Editor writes Free trade theory fails to correspond to reality

Consumer spending revised down for last month. Seems best to wait for at least the first revision before commenting.
;)

And still waiting for the consumer to spend his gas savings?
;)

United States : Personal Income and Outlays
Personal spending

Highlights
Because of a glitch at the Bureau of Economic Analysis, the personal spending portion of the personal income & spending report was posted early. Personal spending rose an as-expected and very respectable 0.3 percent in November with October revised 1 tenth lower to no change. Spending on durables was strong in the month, up 0.7 percent following a 0.3 percent dip in the prior month. Nondurables spending rose 0.5 percent while services, the largest spending component, rose 0.2 percent. The remainder of the report will be posted as scheduled at 8:30 a.m. ET tomorrow morning.

This is not adjusted for inflation, but there hasn’t been much change in inflation for quite a while before the latest dip in headline inflation. And note that given the size of the collapse in 2008 the subsequent growth has been that much more anemic:
Personal spending
This one is inflation adjusted, and has turned down in the last year. And it includes health care premiums which had a one time addition of some 6 million new premium payers which contributed to the ‘bulge’:
Personal spending
Personal spending

WARREN MOSLER
Warren Mosler is an American economist and theorist, and one of the leading voices in the field of Modern Monetary Theory (MMT). Presently, Warren resides on St. Croix, in the US Virgin Islands, where he owns and operates Valance Co., Inc.

Leave a Reply

Your email address will not be published. Required fields are marked *