Tag Archives: Income and spending

Strong personal income and spending contrast with near record low in saving  – by New Deal democrat Like retail sales earlier in November, personal income and spending both rose smartly, as shown in the below graph of real retail sales compared with real personal spending: Real personal income was up 0.4%, and real personal spending increased 0.5%: Nominally each increased 0.3% more; i.e., the PCE deflator was 0.3%. Each metric only had...

Real personal income and spending decline in May, while the saving rate increases (not good!) In May nominal personal income rose 0.5%, and spending rose 0.2%. But since the personal consumption deflator, i.e., the relevant measure of inflation, rose 0.6%, real income fell -0.1%, and real personal spending fell -0.4%. While both real income and spending are well above their pre-pandemic levels, I have stopped comparing them with that, but...