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Spending On Services Jumps By Most Ever As Incomes Disappoint, Savings Rate Near Five Year Lows
Despite expectations that following several months of subpar income growth offset by rampaging spending and thus a plunging savings rate, March incomes would rise by 0.4%, while spending would be flat, this did not happen, and instead both spending and incomes rose by the same amount, or 0.2% in the past month. Worse, when adjusting for inflation, real disposable income rose just 1.1% compared to last March, and just barely above the 0% breakeven. On the other side, real spending was up 2.2% Y/Y just barely above the 2% recessionary threshold. And even that number is misleading as spending on Total Goods (including durable, already known as being quite abysmal, and non-durable), dropped by $32.8 billion in nominal dollars. What was the offset? Why a massive surge in consumption expenditures on services, which rose by $53.8 billion, which absent the spending aberation for September 11, 2001, which was reversed in the following month, was the biggest monthly increase on record! What drove this record services spending spree is anyone's guess.
Durable Goods spending- down:
Non-Durable spending- also down:
... but Services Spending- up, up, up... Record up in fact:
Real disposable income: oops.
Finally, since both spending and income rose at the same pace, the personal savings rate was flat from February, or at 2.7%: just barely higher than the 5 year low of 2.2% posted in January. In other words consumers continue to be tapped out, and it is unclear where the income spurt will come from to drive the much needed spending surge in the coming months. Oh yes, Bernanke's trickle down magic of course. How could we forget.
And if everything else fails, the Fed, tired of monetizing debt, can just step in and start buying goods and services. After all what better way to truly goose the US economy than by outright monetizing not securities but actual inputs into the GDP equation...
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This is part of a comedy act, right? Incomes down and people re buying more services? Makes perfect sense in a world of make believe.
"Here's to stinkin' rich!! Yea!! Stinkin' rich!!"
No....here's to your masters that have been behind the curtain for your entire life making you believe there is a left/right paradigm that you ROOT for.......so go ahead and pick a side......hehheheheehe......pick it!!!.....because whether you pick curtain 1,2,or 3......its all the SAME poison......so go ahead pick your "side"...btw the "stinkin" rich are relative..... a multi millionaire to these guys is "DIRT".....a billionaire is just another dirtball.
services..
you mean like energy bills from your local utility that recently installed smart meters along with time of use price increases or could it be that monthly bank statement with its no fee checking for a paltry $25/mth - is iTunes part of services or that 3 year contract with your mobile provider
Services refers to bankruptcy/divorce attorneys, short sale real estate agents, strippers, etc.......
Don't forget labor services..
No one pays any attention to this but, your local electrician, plumber, HVAC, etc, per hour labor charges generally go up in lockstep with food and energy costs.
A very simple rule of thumb to detect inflation at the bottom level is to watch services labor rates.
All this is, is the reflection of the inflation manifested as higher labor costs to consumers giving the illusion that funds are being spent on services, when in fact what is happening is that the consumer is simply being ripped off..
Labor services rule, always have and always will. If you want your water heater put in and brought up to code cheaper, do it yourself.
Discretionary spending rose YoY?
What koolade are the statisticians drinking?
and tax returns. seasonal jumps in march?
Smart Meters came first, now comes the technology to interface with meter. all part of the plan.
The installer of my smart meter told me it would save me money. 2 years later, still no savings.
Big brother to switch off your fridge: Power giants to make millions - but you must pay for 'sinister' technologyRead more: http://www.dailymail.co.uk/news/article-2315863/Big-brother-switch-fridge-Power-giants-make-millions--pay-sinister-technology.html#ixzz2RrTMyG55
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Why did you let them install a smart meter?? A guy came to my house and knock on my door stating he was there to install this wonderful smart meter. I told him I didn't want it and to get the fuck of my property. He stared at me in shock and went into some long speal how wonderful it was. I repeated myself in stronger tones and pointed out he was eliminating he own job as a meter reader. This guy looked at me like I was crazy but finally left stating I was going to pay more in monthly fees by not installing it. I have solar and pay about $50/ year to San diego gas & electric so having independence is worth far more to me than their shitty fee. God, don't give them more control than they already have!
Miffed;-)
"pick it!!!" ... Hm ... okay, I'll pick up my ball and go home ... ;-)
(edit: By the way: the "Stinkin' rich" is a quotation from the movie "Time Bandits")
So I guess the price for hookers & coke just went up...
Hehe, matrix metrics - bitchez.
Don't know about coke. Never touched it. But high end hooker ass is in high demand and commands a premium price. Or, so I've been told....
Don't know about coke. Never touched it. But high end hooker ass is in high demand and commands a premium price. Or, so I've been told....
Who's got the coins to pay high end hookers?.
Never saw a woman I would pay for sex.Some hard UP morons running around.(must be the Depressed).
The poor?
"Oh you must meet them. I'm sure you'll like them. Of course they haven't got two pennies to rub together but that's because they're poor."
Service sector : http://www.google.nl/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&cad=rja&ved=0CDgQFjAA&url=http%3A%2F%2Fwww.orientalbeauty-ny.com%2F&ei=c3J-Ud_qE8i0PL3BgPgI&usg=AFQjCNGpdaHcc-2jMGpwlElWUzuESfsc6A&sig2=akwJoawkyCLdaVq822QHIg&bvm=bv.45645796,d.ZWU
looks like the asians also took over the service sector in America...
AND IT'S DURABLE BECAUSE YOUR LEFT WITH SOME NASTY SHIT FOR THE REST OF YOUR LIFE!!
Yeah, remember 9/10/01? Rummy Rumsfeld: Whoopsie, there are 2.3 Trillion $ missing from the Pentagon budget....
.... dude... everybody has lost at least once in his lifetime his wallet.... Rummy did it also and everybody keeps blaming him...
Maybe deep in the bowels of the Pentagon they already have trillion dollar coins? But how would you lose .3 of one?
PEOPLE SPENT THEIR TAX REFUNDS! WHOOP-DEE-DOO!
We need a strapping young socialist muslim to get us through this.
Anyone see the jobs bill amonst the gun, gay and abortions headlines?
Not really. I think the number of poeple that actually care about jobs is only like 4%.
YES!!!
THOSE GUN CONFISCATIONS BY DOOR TO DOOR RAIDS WILL CREATE JOBS!!
Yeah, for the people who put the fun in funeral. (Thanks Cleveland)
No, your Foreign Policy is enough in this regard.
an emaciated, nicotine addicted sociopath NWO'er you mean?
What do you mean strapping...is that some sex thing?
What do you mean strapping...is that some sex thing?
That's what Bawney Fwank gets, except he gets real meat.
I think the services spending surge must have been DC lobbyists getting overtime trying to get their clients off of the sequester cuts list.
The sequester is a joke...
~~~
If Obama was serious about getting things under control, he'd have appointed a 'CHEESE CUTTING CZAR' by now...
Still waiting for them to cut the $500b/yr in fraud and abuse in Medicare that they promised to do once Obamacare was signed those many years ago. Any day now, I'm sure.
Cheese Cutting Czar... It's the only hope... I'm surprised that idea hasn't crossed the teleprompter yet...
TAX returns?
Ammo Broker Finder Fees?
Looks like I'm not the only one who is broke-as-a-joke.
I keep watching prices go up year after year after year, while my salary remains static, or as was the case in 2009, I am asked to take a pay cut "for the good of the company". I was a good soldier and took the cut, yet have not seen a raise since then.
Recovery? What recovery?
Yep, no cost of living raise for me after almost 5 years. No recovery at all for my household. Seems TPTB have redefined recovery as "You Have a Job. Now Get Back to Work" or "You Have SNAP. Now Suck It."
Same here. Can't even get a raise in the public sector these days. Yet, somehow, taxes keep going up. I fear the rich are like my first cat; they won't stop eating until they explode.
services up?? here is the reason:
http://news.yahoo.com/silicon-valley-prostitution-boom-different-others-165341980.html
in other news, prostitution has now been heavily weighted by the govt in gdp contributing factors...............................
they fuck for the republic
Pay by the piece (ASE), or pay for the rest of your life?
@kito
Voodoo pu-naan-ee = high grade intangibles
A lot of people bought BitCoins.
Yes, but do hookers accept Bitcoin?
"Worse, when adjusting for inflation, real disposable income rose just 1.1% compared to last March, and just barely above the 0% breakeven."
One of the "benefits" of "official" lying about the "official" rate of inflation is that it enhances all the other "official" numbers.
#Winning
Just wait until we get the new and improved GDP numbers in July-more bogus gov't lies.
Public Employees are a service we do NOT need !
Their guaranteed by the government to increase by 3%, They said so. They are adding more BS and cooking to increase the numbers and decrease the dbt to GDP ratio.
All's well so let's increase debt and blow all the money. The fed will print up Fed dollars to buy it.
"The Fed can just step in and start buying goods and services . . . ". I think they started with ammo.
The plebs? Let them eat cake lead.
Uh-huh. Wait a minute. I didn't catch that. I was busy updating my Facebook page. </sarc>
IS prostitution part of the service economy? It could explain a lot.
Add more hookers to the Washington payroll.
Their expensed out now. It's a booming business in DC.
Service spending increase = windfall for hookers
The drug dealers ain't doing too bad either.
The trend is up as more and more of the "yutes" hitting the street without even a rudimentary knowledge of do-it-yourselfism. Idiocracy here we come baby.
You have a good point there that I hadn't really thought about before. With technology has come a huge amount of specialists and service related technologists. I would guess that those capable of doing much of anything themselves is probably at an all time low now. I am amazed at how few young guys know how to lift the hood on a car or drive a nail or actually fix or construct anything. Its like we hatched a bunch of baby birds that are relatively helpless without their Ipad.
Finally got it. The bankruptsy attorney's are all busy as hell! Now it all makes sense.
Ha! I know some people who can't even afford a bankruptsy attorney. They really should file, but instead spend all their money making the minimum payments to the bill collectors and trying to keep their heads above water. They fell full-face into the Ponzi and now are zombie Debt Slaves. Credit card confetti via USPS over the last 20 years has increased this population to staggering numbers. Why they don't get together and threaten to blow up the economy by way of non-participation is beyond me.
The service surge was primarily due to Michele's repeated calls for dildo repair with Barry out golfing with Tiger. She really likes her favorite triple action rabbit.
Oh those frisky intangible itunes....
BULLISH
What drove this record services spending spree is anyone's guess.
When people are hard up they spend more money on certain kinds of services like laundry, fast food and other things they might otherwise do themselves. How many Hurrican Sandy victims are still getting services comped by the government I wonder? Plus, now that Wall St. is turning into the country's biggest landlord they are probably hiring a lot of lawn mowing and other maintainance services.
Prolly need another $50 billion for Sandy Vics, just to see some of it "trickle down".
Another round of coke and hookers for the beaurocraps, please?
This is all to give cover to the massive GDP adjustment higher in August. They will point to this and make the claim that GDP never accurately reflected the service economy. That the new economy relies on service much more than production, and with true weighting a GDP number in the $22-25 trillion rage is more accurate.
YAY, US debt to GDP just went way under 90%!!!! Obama can double deficits and still be in the clear. Hell the USA should get a few notch ratings upgrade!!!
I know I'm feeling more "serviced" than ever. Especially after the 15th of April. It only hurts when I laugh.
What kind of services? Why, Haircuts, of course. Lots and lots of haircuts.
These economist buffoons still don't get it. The real world is stuck in a depression. People are struggling to get buy. They aren't growing/expanding the economy. We're all just trying to tread water: at what point do we sink? Governemnt over regulation and intrusion, taxes, debt, inflation, falling wages... in real terms, this ship is sinking.
Stick it in your ass, bernanke and congress. You make our lives miserable.
"The real world is stuck in a depression." That's correct, but the world isn't stuck in a bear-market, yet, and that would be all they'd care about ...
Divorce attorneys; and that guy in a 10-gallon hat that will get you on disability.
Go long drink, go long coke, go long whores.
and go long charts
Getting And Spending
http://chartistfriendfrompittsburgh.blogspot.com/2013/04/getting-and-spending.html
If we back into the personal consumption data with Friday's GDP, the services spend was dominated by 'housing services', 'housing and utilities' and 'financial services'... on the first, this is your "imputed rents" that homeowners would pay to themselves if they were to realize the economic value of their loan; on the second, higher nat gas prices likely explains the bulk; on the latter, probably more billable tax hours this year as well as higher portfolio valuations and thus fees.
http://www.pewsocialtrends.org/2013/04/23/a-rise-in-wealth-for-the-wealt...
An army of hairdressers (and beard trimmers) marching into the fed every day. I mean, a beard trim for bernankes mighty facial fur would add at least 0.1% to GDP right?
http://bitcoinstore.com
Basically it is Ingram Micro
But services soon to follow.
We are never allowed from now on to have another recession in the U.S. So the stats will be massaged. It's "recovery" forever based upon infinite digital money.
We are also not allowed to have a country. Nonstop immigration from every corner of the earth until we have half a billion or more people, none of whom have anything in common with one another.
I don't understand why the top Jews do this. Are they mentally ill? Do they not realize that if they destroy America, Israel goes down as well?
This kind of behavior by consumers leads me to believe they have "thrown in the towel".
With Benny and the central banking cabal buying bonds and stocks, too big to fail banks rigging rates and commodity prices and socialists around the world fudging statistics: DOW 66,000 by 2020. Buy everything.
When I use all my spare cash, and some savings, to buy silver and gold bullion, does that count as consuming or saving?
Neither, and that is precisely why they don't want you to buy silver and gold bullion. Buying those things is just a selfish attempt to preserve your familys' wealth. This needs to be a team effort so sell those PMs and use the cash to buy stuff at the mall. Get with the team so we can all go in for the big win!
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What produced that sudden spike in RDIncome?
The tax issue at the end of the year where everybody declared their dividends?
Then that figure should be more thoroughly explained/delved into, as that's not the little guy, that's the rich guys. And they don't count.
So maybe that sudden spike is overly representational compared to the actually population?
What if 80% of the population didn't have any increase in the RDI?
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