February Personal Outlays Sustained By Service Spending Surge; Durable Goods Spending Slides

Tyler Durden's picture

Moments ago the BEA reported February personal income and spending which were expected to show a modest pick up following what all economists have classified as the "polar vortex" winter doldrums. While it remains to be seen whether and if spending, and income, will indeed pick up considering the deplorable state of the US household's earnings prospects, both metrics came precisely in line with consensus estimates at 0.3% (if not those of DB's always amusing permabull Joe LaVorgna who expected a 0.6% increase in spending).


The personal savings rate picked up by the smallest possible margin, rising from 4.2% to 4.3% in February as a resuit of a downward revision in January spending (from 0.4% to 0.2%), amounting to $544.5 billion in February, compared with $535.9 billion in January.


The good news: US consumers can still be tapped for half a trillion in savings when it comes to bean counts of purchases.

Next, we highlight the danger of taking any data out of the government at face value. Recall that last month, the spending on services according to spending data, hit an all time record of over $70 billion:


Well, the is no longer the case, as the Jan service spending data has been revised well lower, to just $50 billion, however at the expense of a continuation in spending in February, when another $26 billion was forked over for "services" mostly of the healthcare kind:


As for spending on real, durable goods? It declined for the third month in a row, down by another $2.3 billion to $1250 billion, the lowest since March of 2013.

At least the US has Obamacare to keep spending afloat.

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TeamDepends's picture

Also, the daily chocolate ration has been decreased to two sticks twenty.  We are also now at war with Eurasia.  We have always been at war with Eurasia.

madcows's picture

... and the Ministry of Plenty would like to announce that the production of shoelaces has jumped 98% over the previous quarter, and the standard of living for all citizens of Oceania has improved 15%. 

Call it what it is, PRAVDA.

NoDebt's picture

On CNBC this article is called "Spring has sprung!" with the caption "the latest sign the economy was thawing out from a tough winter".

Now, I want you to think about that for a second, bearing in mind this is FEBRUARY data.

madcows's picture

CNBC is shiny people in shiny suits doing cartwheels and shouting cheers.  Hooray!  Go Team Go!

Their ratings are in the toilet for a reason.... same as the big three.  People have awoken to the reality that the networks are nothing more than sycophants.

SheepDog-One's picture

Sure the chocolate rations have been decreased, but didn't you notice the new delicious airy hollow center?

TeamDepends's picture

Is there moar delicious airy hollow center than befoar?

GetZeeGold's picture



Gotta cut durable goods to afford food these days.

youngman's picture

Gotta cut durable goods to pay your heating bill is more like it

krispkritter's picture

Does HR Block count in the Services spending?  Feeding the Beast can be taxing...

PontifexMaximus's picture

bullish, bullish, quarter end is near, yields on the absolute low side, markets even, a lot of noise for nothing, thanks to Vladimir Vladimirowitsch, without him, a no brainer quarter. I hope that all the virtu, waddell  & reed  are writing their  paychecks to their Russian friends , that at least a bit of volatility was in the markets.

Spungo's picture

Executive order: all households must be nonprofit. Anyone caught with a positive savings rate will be executed via predator drone. You won't see it coming.

NoDebt's picture

I'm going to count backwards from 10.  Listen to the sound of my voice.  10.  You are feeling very relaxed.  9.  Close your eyes.  8.  Your arms feel very heavy.  7.  You are feeling sleepy........


1ifbyland's picture

"Just look at the flowers Lizzie, and we'll count 1,2,3.."

101 years and counting's picture

its not really personal "income". its all the tax credits and rebates the gov hands out every feb to those in poverty that file tax returns asap so they get their free "money".

papaswamp's picture

Gotta love healthcare spending...nothing like forcing people to keep the economy in positive territory.

SheepDog-One's picture

Alright you damn monkeys listen up! Get back out there and start connedsuming like crazy on credit cards again! We want those new Gubmint Motors ObaMao vehicles filled to the brim with Cheezy Poofs and Snackey Cakes! That's a direct order from your overlords who live off of you, now get back on those oars and ROW dammit!

dogismycopilot's picture

they must be including Barry and Snapping Turtles's vacations in those numbers.

NOZZLE's picture

So idiots bought services like what,  massages instead of washing machine?