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Personal Savings Rate Rises To 2013 High As Consumers Defer Spending Spree

Tyler Durden's picture





 

There was little of note in today's May Personal Income and Spending report (aside from the now-traditional backward looking revision of Q1 data): personal spending was expected to come increase 0.3% in May, and so it did, up from a revised 0.3% drop in April. Income, however, spurted by 0.5% in the month, more than double the expected 0.2%, up from an adjusted 0.1% increase in April. The income rise was as a result of a $24 billion increase in wages, and a $31 billion rise in income on assets (interest and dividend income).  Finally $19.4 billion in personal current transfer receipts (government generosity) completed the picture of why Americans' incomes rose in May. However, despite this beat in income, spending was in line with expectations, and following the revisions of January-April data, the May 3.2% savings rate was the highest reported so far in 2013. For the Keynesians out there, this is hardly the strong indicator of consumer spending they have been looking for.

 


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Thu, 06/27/2013 - 08:55 | Link to Comment GMadScientist
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Wealth E-FUCKED.

Thu, 06/27/2013 - 09:01 | Link to Comment Bindar Dundat
Bindar Dundat's picture

No, it's trickle down poverty!

Thu, 06/27/2013 - 09:03 | Link to Comment Stackers
Stackers's picture

That chart has so much noise and range I dont see how you draw any meaningful long term spending or saving habits from it.

Thu, 06/27/2013 - 09:06 | Link to Comment Monedas
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Trickle down your leg pee poverty .... and .... bubble up bath tub farts prosperity .... the good life !

Thu, 06/27/2013 - 09:12 | Link to Comment SheepDog-One
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Bath tub farts....the new jacuzzi!!

Thu, 06/27/2013 - 09:10 | Link to Comment GMadScientist
GMadScientist's picture

Ooze out of every pore like an Ebola meltdown poverty!

Thu, 06/27/2013 - 09:12 | Link to Comment nbsharma
nbsharma's picture

Man, so true.

Thu, 06/27/2013 - 11:12 | Link to Comment Midasking
Midasking's picture

As Krugman says government spending is my savings.... just need them to spend another 17 trillion and we could all be rich! http://tinyurl.com/mem7o7x

Thu, 06/27/2013 - 09:00 | Link to Comment SheepDog-One
SheepDog-One's picture

'Spending spree 'defered'...lol wut?  WOW these Maniacal Monetizer fractional reserve lending banksters just keep insisting the same old bubbles get blown, so they can keep their worthless selves going! 

 

Thu, 06/27/2013 - 09:02 | Link to Comment SheepDog-One
SheepDog-One's picture

FUCK IT hey kids everyone pile into the Family Truckster....we a goin on a SPENDING SPREE!

YAYYYY!!!

Thu, 06/27/2013 - 09:02 | Link to Comment Fiat Burner
Fiat Burner's picture

A 3% savings rate.  Fucking laughable. 

Thu, 06/27/2013 - 09:03 | Link to Comment SheepDog-One
SheepDog-One's picture

And that a 3% savings rate is deemed by Wall St banksters as 'defered spending spree...just too high of a savings rate'....WOW they really won't be happy with anything less than 100% debt slavery!

Thu, 06/27/2013 - 09:14 | Link to Comment Fiat Burner
Fiat Burner's picture

And look in 2008 the public was so scared they saved a whopping 8%. 

Thu, 06/27/2013 - 09:17 | Link to Comment fonzannoon
fonzannoon's picture

that was just main street locking in a 50% loss and putting it in the bank and locking in a 0% gain while the banks stopped loaning and used the new deposits to lock in a 125% gain over the next 4 years.

Thu, 06/27/2013 - 09:04 | Link to Comment autofixer
autofixer's picture

Why save?  It will just be "bail-ined".

Thu, 06/27/2013 - 09:48 | Link to Comment MissCellany
MissCellany's picture

Hard to believe, too..especially with the news earlier this week that 76% of the country is living paycheck to paycheck...

Thu, 06/27/2013 - 09:04 | Link to Comment disabledvet
disabledvet's picture

yet another reason to stay long the regional banks "and new forms of banking" (Bank of North Dakota.) the propaganda emanating from New York City that there exists a capital shortage (save for Wall Street of course) is absolutely ridiculous and a big reason why a lot of this rally has been missed both in nominal terms (stuck in treasuries and gold throughout) and in "income" terms (investing in widow and orphan income plays which have really gone nowhere over these 5 years.) I agree "hyper growth" realities as we have had and will continue to have in the USA yield even more spectacular downsides...but hey, this is US structured capitalism folks. "supercharged for growth" is the norm.

Thu, 06/27/2013 - 09:05 | Link to Comment valley chick
valley chick's picture

Hell yeah...been one one awesome spending spree at the farmers market! Canning and stacking! :)

Thu, 06/27/2013 - 09:48 | Link to Comment toady
toady's picture

I wish!

I have been on a spending spree. It seems al my durable goods decided not to be so durable after all. The fridge, washer, desktop pc, and truck all went to shit last month. I'm buying new and/or paying for repairs every other day

And now it looks like I need a new roof.

Thu, 06/27/2013 - 09:05 | Link to Comment Hopeless for Change
Hopeless for Change's picture

is the Housing Bubble 2.0 being reflected in "income on assets"?  or just interest and dividends?

Thu, 06/27/2013 - 09:09 | Link to Comment Monedas
Monedas's picture

2nd street .... downtown Tijuana .... is now one way !

Thu, 06/27/2013 - 09:11 | Link to Comment GMadScientist
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Standard Roach Motel design.

Pssst...El Paso is North Juarez.

Thu, 06/27/2013 - 09:10 | Link to Comment SheepDog-One
SheepDog-One's picture

2013 high is a 3% savings rate.....and Wall St just simply can't have THAT! Far too much money in the hands of the people, it should rightly be a 0% savings rate, $15,000 minimum credit card debt to make the Bankrupt Virginia Corporation happy.

Thu, 06/27/2013 - 09:13 | Link to Comment GMadScientist
GMadScientist's picture

The trick is having them do that AND make their new mortgage payments on time; either part of the Jenga stack will bring the credit tower tumbling down again.

 

Thu, 06/27/2013 - 09:17 | Link to Comment SheepDog-One
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Fucking 100 point DOW premarket Viagra pop....fucking unreal.

Thu, 06/27/2013 - 09:22 | Link to Comment Bearwagon
Bearwagon's picture

Hey, SheepDog, you know what? It's all fuckin' unreal!

Thu, 06/27/2013 - 09:19 | Link to Comment adr
adr's picture

I wonder what happens if you strip unearned income out of the number?

I sure as hell know earned incomes are still dropping.

Thu, 06/27/2013 - 09:23 | Link to Comment beekeeper
beekeeper's picture

Looks like I'm in good company. Got a slight raise (first in 3 years) and refinanced the homestead at a 2% lower rate. All extra income and mortgage savings are going straight to paying off debt. Other than the mortgage, I'll be debt free in a year. The mortgage will be paid off in 12 years. I don't need no stinking iCrap.

Thu, 06/27/2013 - 09:30 | Link to Comment g'kar
g'kar's picture

Good man, as soon as the other debt is gone add as much as you can to pay off the mortgage debt.

Thu, 06/27/2013 - 09:39 | Link to Comment Bobbyrib
Bobbyrib's picture

He should make sure that he has 6 months to a year in living expenses saved. People who paid ahead of schedule on their mortgage then got laid off got foreclosed on and fucked over.

Thu, 06/27/2013 - 09:45 | Link to Comment g'kar
g'kar's picture

Agreed

Thu, 06/27/2013 - 09:50 | Link to Comment beekeeper
beekeeper's picture

Good point. I definately need to work on the emergency fund. I could last probably 2 months with what I have in savings but would need to dip into my retirement (and suffer the 10% penalty) if I had to go beyond that.

Thu, 06/27/2013 - 09:46 | Link to Comment beekeeper
beekeeper's picture

That's the plan. As long as my Subaru with 257,000 miles on it cooperates, I should be ok. It's been a good car. Bought it used with almost 150,000 miles on it for $3,500. I've hardly had any issues with it. I make sure to change the oil regularly. Does great in the snow and pretty good gas mileage to boot.

Thu, 06/27/2013 - 10:08 | Link to Comment CoolBeans
CoolBeans's picture

Any increase in personal savings by the general public must be their mortgage payments staying in the bank account vs. being sent to pay the monthly bills.  

The Bloomturd article this morning about a bit of a spending increase? Another avenue for mortgage payments not being made.   How can this be when more than 70% are living paycheck to paycheck?  Hmmm...

Thu, 06/27/2013 - 10:47 | Link to Comment Smegley Wanxalot
Smegley Wanxalot's picture

The bankers, politicians, shitheads, and krugmans of the world are looking at that sky-high 3% savings rate and thinking "it's time to give these fucking savers a haircut and teach them a lesson for not doing as I wish."

Thu, 06/27/2013 - 11:06 | Link to Comment All_Your_Base
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Is stacking rounds at the bottom of the lake considered personal saving or personal spending?

Thu, 06/27/2013 - 12:08 | Link to Comment robertocarlos
robertocarlos's picture

That is spending.

Thu, 06/27/2013 - 11:16 | Link to Comment FJ
FJ's picture

As Socrates would point out strolling round the Athens' market place: Overwhelming, how much sh*t there is to buy, you don't need.

Thu, 06/27/2013 - 12:07 | Link to Comment robertocarlos
robertocarlos's picture

Paying off debt is savings so congrats to those who are getting out of debt. You may be killing the economy but your allegience should be to yourself. Fuck the govt.

Thu, 06/27/2013 - 13:02 | Link to Comment 22winmag
22winmag's picture

I'm saving alright... cans of salmon, cans of beans, and ammunition.

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