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US Household Spending Tumbles Most Since 2009; Salaries Have Smallest Monthly Increase In 7 Months
After last month's epic Personal Income and Spending data manipulation revision by the BEA, when, as we explained in detail, the household saving rate (i.e., income less spending ) was revised lower not once but twice, in the process eliminating $140 billion, or some 20% in household savings...
... there was only one possible thing for household spending to do in December: tumble.
And tumble it did, when as moments ago we learned that Personal Spending dropped in the month of December by a whopping 0.3%, the biggest miss of expectations since January 2014 and the biggest monthly drop since September 2009!
As a result, this is what the US income and spending picture looked like:
And, as we predicted last month, the savings rate surged from 4.3% to 4.9% in December, as the spending spree, all of which took place simply in Department of Truth seasonally-adjusted models, had to be normalized out.

But wait, there's more. Because while spending cratered the most in 6 years (but.. but... gas-savings boost spending), the income picture was just as dire, and while Personal Income rose by 0.3% in December, above the 0.2% expected, the key component that everyone is, or should be, looking at, Wages and Salaries increased by a tiny 0.1%: the smallest monthly increase since May, and what's worse, Goods-producing wages actually declined by 0.2% in December, driven by a drop in Manufacturing sector wages.

Some recovery; some "plunging gas price" spending spree.
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But they tells me that cheap gas will kinda fix this? What is the problem? It's like a mini stimulizz!
Shit, I was all set to BTATH
- YELLEN SAYS AMERICAN FAMILIES MUST LEARN TO LIVE WITHIN THE MEANS SHE PROVIDES FOR THEM
- YELLEN SAYS EVERYONE KNOWS GOVERNMENT PRODUCED STATS ARE COMPLETE BULLSHIT ANYWAY
- YELLEN SAYS "REMEMBER,....A NEW SEASON OF AMERICAN IDOL HAS STARTED, SO STOP WORRYING ABOUT US BANKSTERS STEALING FROM YOU"
Quick Mortimer!
Sell gold, buy stawks!!
It is clearly the only logical thing to do right this minute here in the pre-"""market"""!!
But they tells me that cheap gas will kinda fix this?
Cheap gas is still expensive for someone with a 29.5 hr/wk job.
I'm gonna live it up with the money I save on gas and buy me a McMeal Deal!
McDonalds brings a double advantage to economic activity, not only the original purchase of the meal, but the shitload of toilet paper one must use afterwords !!!
People who can't afford cars don't buy gas.
I spend a good bit of time behind the wheel, and have noticed a steadily increasing number of cars on the side of the highway. I think many people are putting off needed repairs until too late, and some can't afford to fix them. More cars on the road with no insurance, too, so watch out.
It's a brilliant plan. What percentage of 'new' cars over the last 20 years were equipped with ticking time bombs known as 'automatic transmissions'>
When those timebombs blow (100-150k miles), the cost of repair often exceeds the value of the car. So, what's left but to go subprime and buy another POS with a built in timebomb.
BRILLIANT!.
When the car salesman says to you as you bemoan the lack of Manual Transmissions on the lot "nobody wants a manual", you can just translate that as "we don't want to sell manuals because they last too long and are too cheap to repair".
The government, in their infinite wisdom is aiding and abetting this scam by their fuel mileage requirements... wouldn't you know it, but a CVT (total POS) gets 2mpg better than a manual, so all new models come with CVT. The sales force will use all sorts of bullying to keep you from ordering a M/T or requesting a dealer trade.
Nevermind that advanced engine management has produced remarkably fuel efficient and powerful engines that last for 100's of thousands of miles, but bolts them to transmissions that won't last a fraction of the engine's life and cost more than the car is worth to repair in many cases.
<<<--- 2005 Jetta TDI wagon with original clutch/trans at 190k miles.
If I had a nickel for every 10 year old car with a dead trans that ends up in teh scrapyard, I'd be...
Fuck it. Facts don't matter. Only convenience and what everybody else is doing.
That may be true, but I think the average american is probably too lazy to push in a clutch and actually shift a gear stick.
Now that's funny, bemoaning the automatic transmission "timebombs" when in reality most US cars had AT since at least the 70's,
and to top it all off
boasting with a Volkswagen TDI that needs the timing belt replaced every 80k as otherwise you risk totalling your engine, and some even say the PD injection unit on every cylinder should be replaced after a bit over 100k?
(Note I love the general engine concept, but the use of undersized timing belts plus the general introduction of PD units with little long-term experience on it, really were two foolhardy VW decisions.)
Automatic transmission is an abomination of the Lord. I will not weep for all those early demises.
OBAMA: the shadow of crisis has passed < enough said!
all this NOISE means nothing...
Blah blah blah...
it is all irrelevant as every central bank on earth is now directly monetizing everything.
I don't see any end to it any time soon.
Wild exaggeration, not even close to true LoP
I'll take the liberty to rephrase for him: every central bank THAT MATTERS is now directly monetizing everything.
- DRAGHI SAYS "I'M TOO BUSY RUNNING THIS PRESS TO RESPOND TO THAT ACCUSATION"
- DRAGHI SAYS "I'M TOO BUSY MANNING THIS PRESS LIKE A SEVEN YEAR OLD IN A SEOUL SWEAT SHOP, LIKE STRAUSS-KAHN'S LITTLE PARTY BITCH"
"The CBs that are most indebted are now directly monetizing everything", would have worked just as well. ;-)
This economy is nothing but a Stasis.
since the economy is going down, once it bottoms it can only go higher. so, its time to BTFD.
This can't be true. Our Dear Leader POSident Barack Obuttfuck says everything is going swimmingly.
His definition of 'swimmingly' looks like my definition of 'barely treading water'.
Spending will pick up in April when all those tax filers find out they need to pay their Obamacare penalties, er...taxes.
What's a salary increase?
That's when you don't get fired.
I would also add that an increase is one that is large enough to actually go above and beyond what the true annual inflation rate it. This 2% to 3% cost of living "raise" is a joke. Don't get me wrong, IF I get a raise this year I will still be glad I got something, but fuck that noise about it actually keeping pace with the real rate of inflation.
.gov adjusts all the other numbers but somehow that pesky 2 or 3% just never gets a nod now does it. Fancy that, while all the fucks in DC give themselves mo monee whenz they think that thier "paltry" salary ain't cutting it, nevermind all the freebies.
Under the new rules for price inflation, there is no price inflation if you can't afford the shit you bought last year, but instead can afford a cheaper, lower quality alternative.
What, you cant afford a hamburger anymore? Well fuck, you can still buy half a can of beans, so quit ya bitchin' about inflation when there ain't none! And next year when you can't afford that half a can of beans, shut up and eat a carrot. There is no fuckin inflation, damn it!
Up is down, down is up, and inflation is deflation. Get with the new program.
Something government and healthcare workers get? I've heard tell of it.
Private companies that aren't protected monopolies or money changers/printers? Meh not so much.
You know the corporate numbers have to look good and the brilliant execs need their bonuses to the companies can retain all that awesome talent.
That's what I learned in corp world.
The workers are like cogs in a machine but the execs are (cough cough BULLSHIT) special flowers that must be protected, excessively compensated and lavished with benefits, as well as never held accountable when the fuck up.
Mission accomplished bitchez!
Seen BDI? Below 600....and falling like a stone.
Hey, don't mention BDI! TPTB are busy "correcting" Crude while watching equities, VIX, bonds and the king dollar! They can't manipulate everything at once!!
(Why does this massive full scale manipulation remind me of "whack a mole"? It's getting more and more crazy... and then at one point: "Boom"! "Game over")
"Seen BDI? Below 600....and falling like a stone."
Awww, that's just the shippers passing on their lower fuel costs, right?
And confidence at all time high? Should be good for. 250 pt climb..
I cant stand these lying fuggers..
Reaction models never work
Forget a canary. ..... Consumer in a mine.
That explains the drop in gold this morning. Americans are not spending their gas savings on 1oz gold eagles
errbodys broke, house price wont go up, pissed
Start spending that gasoline savings now Mr.& Mrs. Consumer!
Buy, MOAR!
This is pure propaganda, most likely put out by the vast right wing conspiracy in a effort to harm Obozo.
Won't work, the shadow of recession has passed and I know this because Obozo say so!
USSA! USSA!
i blame bush for.....? i dont know but the sxperts on msnbc tell me its bush.
FUCK YEAH!
Obama will fix this. Higher taxes to pay for higher public union pay and pensions and higher obamacare prices.
The only place where salaries keep increasing is in the public sector.
Must keep the Police State fully funded....
- YELLEN SAYS QE HAS ALLOWED WALLSTREET TO CONVINCE COMPANIES TO BORROW EXHORBITANT AMOUNTS OF MONEY AND USE IT FOR STOCK BUYBACKS, WHICH SHOULD BOOST BANKSTER BONUSES AND SALARIES BY A CONSIDERABLE MARGIN.
- YELLEN SAYS "OF COURSE IT WAS US BANKSTERS SELLING THE COMPANIES THEIR OWN STOCK FOR THE MONEY WE LENT THEM. THAT'S HOW THE SCAM WORKS, DUMBASS".
You should do more of that.
That's what they carry guns for. Checkpoints, speedtraps, endless 'safety regulations', and of course, mandatory compliance.
OR ELSE. PAY UP OR DIE. BITCHEZ.
My pension, you see. And we can never reduce staffing because of the children.
So, again, PAY UP OR ELSE.
Gas prices down = more lotto ticket purchases. The class most affected by that price shift doesn't particularly invest the rest correctly.
Very true, instead it simply means extra money for more Colt 45 and smokezzz. (not aimed at any race in particular, rather the dumb bleating sheep that don't have half a brain to pay down anything with any extra money they might have saved as a result of lower prices at the pump)
You identified a market need.
Create an investment vehicle that takes $5.00 increments a week and only needs $2.00/$3.00 to open.
"Everything Is Awesome" American Consumers Are The Happiest In 11 Years
That article came out 4 days ago about UMich Consumer Sentiment. It's Mr.Shit meet Mr.Bull every day in the msm and the Ministry of Truth.
Yes. There are many government supplied facts like this that can be easily debunked if you care to look.
Thing is most people are intellectually lazy and don't want to even ask if they're being deceived.
This is true.
Even I never get raises so I take computer parts and sell them on ebay.
Admittedly, the computers haven’t been upgraded in a long time so these parts I Sell are going for less and less = less monthly discretionary.
My dog is very smart when it comes to analyzing government statistics. He looks at the stats every month over my shoulder on the computer and then I ask my dog “…how are people doing Bosco…” and he always answers the same way “…ruff…” So there you have it. If you want a straight answer on what’s going in this country ask your dog.
Walmart was packed yesterday.
EBT payola bonanza super sale black sunday retail sales up up up!
BTFD, BTATH.. doesn't fucking matter just buy motherfuckers.
29.5 hrs/wk x $7.25 p/hr = $213.88 p/wk
(Withholding, SS, Medicare) totals = $33.32
Takehome = $180.56 p/week x 52 weeks = $9,389.12 per year.
... I don't think he/she has enough money to spend on anything, much less save/invest. Though the low gas prices are extra bucks to enable he/she to pay the Obamacare tax penalty.
Understand that, "support future spending" clearly means: I'm not spending it now, because I want to be able to retire, someday; when I am 90 years old. Or more accurately: I am already supporting all of my Unemployed relatives, and their families everyday. So, I have nothing left to spend for things that I'd like to have for myself and sometimes I have to remember about personal loans online service. I am so very glad that the economy is recovering, somewhere besides where I live.