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Personal Spending Suffers First Drop Since January As Consumer Income, Outlays Miss
Judging by the just released personal income and spending data, consumers are already forecasting a long, harsh winter. With incomes and outlays expected to rise by 0.3% and 0.2% respectively, the July data was a big dud, missing on both expectations, and while income rose by a modest 0.2%, far below the 0.5% in June, it was personal spending which in fact declined by 0.1%, a major drop from the 0.4% increase in the prior month, and the first outright decline in spending since January. As CNBC's Steve Liesman explained the disappointing data: "weather."
The monthly tumble in spending is clearly an indication that either the lovely weather is not priced to perfection, or harsh winter is coming:
The very unexpected drop in outlays was driven by a contraction in spending for both Durable ($9.1) billion and Non-Durable Goods ($3.4) billion.
And while today's income and spending data is bad news for the economy and Q3 GDP, which is about to be slashed by 0.5% by the sellside, likely pushing it into the 2%-range, it is great news for the tapped out US consumer, whose (repeatedly revised) savings rate of 5.7%, up from 5.4% in June, just rose to the highest since 2012.
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Yeah... too dry in CA, too wet elsewhere.
My ass.
steve, quit trying to be helpful.... just go sit in the corner, OK... do something constructive... your mom would be disappointed... so would dad... please stop...
Really hard to get your porridge just right , ask goldilocks Liesman.
Winter is almost here......i vote we fund us some global warming right about now.
Is it just me or was there very little chatter about "back to school" spending this year? Usually it's a topic that gets hammered hard from about the middle of July to late Aug. This year, it seemed like almost a non-subject. Probably because the latest iPhone or iPad wasn't ready in time.
Time to fire up the HARP machines and get that weather working for us! Oh, wait that doesn't exist. (really it does)
I haven't heard squat about back to school spending. Yeah, odd... However, I have seen a bunch of commercials for the "New & Ghetto" Kmart that has taken a totally urban approach to back to school.advertising. Or maybe that's just how SkHoOl bE tHeSe dAyZ, yO!
Oh yes, the local channel out of Phila had a piece on school spending...seems that apparel and school supplies are taking a backseat to the latest in electronics, yanno ya gotta get an iGadget to look kool yo !
So, sales are seemingly skewed to electronics, and less towards other traditional back to school items.
It was all donated, sales tax holidays, coupons, discounts, a non event.
what damage the "weather" causes can be easily repaired by buying monster blocks of SPY ala 10 minutes before obama presser yesterday
Excessive savings = excessive confiscation.
Completely agree. What are the savings? They are little $ digits on a computer screen. They ae easily evaporated. If you are going to save do it by saving something of value.
it was a very cold 79 degrees here in what is equivalent to the 8th largest economy in the world. we also got a few minutes of drizzle (my nizzle) on one of those july (or was it early august?) days.
it's the weather, totally, the weather.
Mr. Yellen can't print weather ?
I though the FedRes was all powerfull.
We're hurting out here in normal America but as Joe K found out on CNBC this morning, the FED's number one mission is to keep the uber rich happy. As George Carlin said, "you ain't in it."
Wizard of Oz: ...Therefore, by virtue of the authority vested in me by the Universitartus Committiartum E Pluribus Unum, I hereby confer upon you the honorary degree of ThD.
Steve Liesman: ThD?
Wizard of Oz: That's... Doctor of Thinkology.
According to PMSNBC Americans number one and favorite pastime is shopping. Probably just taking a breather to rest up for the real deal, Christmas shopping.
Never give up on the great American consumer. Just give their fat ass another credit card and they will be out yelling...charge!
It's for the chidrens.
Its be going on since the stone age.
https://www.youtube.com/watch?v=WcQzdYk7QHE
https://www.youtube.com/watch?v=8rqNZAIQH4U
And specifically what is the "favorite pastime" of "fat asses" in better, more enlightened parts of the world?
It's always warm and sunny on the private islands of the ruling class bankers.
How much longer before The Fed just prints money and simply hands it out to the peasants?
LMFAO!
October
There is truly nothing to bizarre for these people!
http://davidstockmanscontracorner.com/keynesian-fairy-tale-alert-establi...
I know most of these numbers are made up, but I have to believe that a number of individuals are doing what corporations are doing - tax inversions - in order to lower or eliminate their tax burden. Also, I saw a story about a 60 year old retired guy and his wife, who collect disability, and who get money by making crafts and selling them at craft fairs. This opens a question as to how 'disabled' they really are - but also hints that many individuals are moving to the underground economy where not all profits are reported (something very common in Southern Europe)!
disability can mean anything. fat, lazy, stupid, drug addled, absolutely anything. darwin in reverse.
Disability is having the right Doctor and Lawyer to say anything.....
When being too fat to work became a Disability that was the when I decided we're doomed.
Disability Interviewer: "Disability?"
Applicant: "In recovery"
Disability Interviewer: "From what?"
Applicant: "From life. From playing the game according to the "rules" and ending up with nothing"
...and in other news. UK raises terror threat to severe and Senegal records its first case of Ebola ( for this outbreak).
I was apart of that stat..except for some meidocre hookers, beer, and bud. Those are necessities.
Steve Liesman is a gigantic twat
This news would seem to fit the Bad = good meme for the markets............but the SP futures have only faded since it came out. Hmmmmmmmmmmmmmm.
Survey consumer spending at gun and ammo stores/websites and I'm sure you'll see an entirely different result.
We have cut all non-essentials and are rethinking what is essential. Dumped our 1st tier expensive cell carrier for an approximately 50% lower cost 2nd tier carrier – service is working well. Dropped all “nice to have” subscriptions, premium cable channels, etc...
We're debt free and very frugal but concerned that corrupt local, state, and national government will continue to raise taxes to keep their friends and families directly and in-directly (contractors) employed. Should have renounced citizenship and emigrated instead of building our retirement farm in the USA.
Oh well, Hindsight is always 20/20.
Consumer spending down?
Well, unemployment benefits end.
And there is a gap between the end of unemployment benefits.
And the beginning of the lifetime "disability" benefits.
Maybe what we are seeing here is the gap betwwen the unemployment bennies and the start of the "disability" bennies?
The Dreaded Bennie Gap!
Hardware store and auto parts store clerks standing around staring at the walls; greet me like a long lost brother when I wander in there to buy something; consumer spending=dead in the water according to the local business owners.