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Personal Spending Surges Most Since August 2009 As Savings Rate Tumbles
After 6 straight months of decline in annual spending growth, May saw YoY spending pop 3.6% (the most since Dec 2014). After an unchanged April, May expectations for spending were a 0.7% jump but the data blew that away, printing a 0.9% MoM jump - the biggest since August 2009 and biggest beat since Jan 2013. Personal Income only grew at 0.5% (still the highest MoM jump since March 2014) driving the savings rate down to 5.1% - the lowest since December. Before Steve Liesman and his buddies get too excited - spending was driven mainly by a 4.72% surge in spending on Energy goods & services - not exactly what the discretionary buying consumer-oriented society that is required to keep the dream alive was looking for. Finally we note non-durable spending topped durables and this exuberant GDP-boosting spendfest (un-save-fest) provides more ammo for an earlier Fed rate hike.
Spending Spike...
But all of the gains went to energy costs... Spending Ex-Energy is the lowest since March 2011...
Savings Down...
As spending outpaces income once again...
With non-durable spending outpacing durables...
Charts: Bloomberg
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PERSONAL SPENDING increase = Deposit on car loan
Spend it on crap you might need.....or get bailed in. It's a no brainer really.
If you don't need anything just spend it on gold.
Could come in handy later.
I looked around me last weekend...friends, associates, coworkers, etc. My own observation was that everyone is behaving as if nothing bad could ever possibly happen. They behave as if their current income is locked in for life, and they believe it will only improve....so, spend away. The future will only be brighter than the past. drink up...
http://www.bizjournals.com/houston/morning_call/2015/06/another-houston-...
I guess unemployed people have more time to spend money they don't have?
@Antifaschistische
That's because they have not opend thier eyes and ears and still living in the MATRIX
They have not stood outside the MATRIX and looked at it from the outside.
They are still inside and blissful
I often wish I'd just taken the blue pill and thought everything was going to be fine, just fine.
Maybe it all is and us ZH'ers are going to look very stupid.
...but somehow...I doubt it!
Please separate those charts: Bottom 90%, Next 9%, Top 1%.
Very interested to see the contrast, and the introduction of red to the picture.
Spending up, production and manufacturing down. How is good news?
in a consumption-based economy, spending is the only thing that matters! Because...Economists!
Spending up, production and manufacturing down
There you go thinking again.
He must be some kind of terrorist.
He has got to be. We can't have people questioning the system.
Amazing that the Bloomberg chart at the end shows a steady rise in income and spending, especially since 2008, yet most government and non-government figures show average income for most families is down about $8,000 per family since then.
.
Folks haven't met deductible yet.
+100
Folks haven't met deductible yet.
The republicans are in talks with Obama to raise them.......boy, you gotta love those guys.
Spend it before your buring it to keep your home warm ... money has been made worthless the sheeple just do not know it yet!
Hey Betty want to go shopping? I don't have any money Wilma. That's okay we will just:
https://youtu.be/8rqNZAIQH4U
Why were there no black people in the Flintstones?
Because there was no way to transport them. Stone ships didn't float very well. .
consistant with people not making more, just borrowing more. need further proof? just watch the consumer credit #'s; topped $20.5 billion last month i believe.
guess im the only idiot who has no debt, sold his house last year, and blew-out a shitload of stocks & bonds at screaming high levels. i have no problem being a spectator to this insanity.
There are a lot of people like you - I did the same - waiting on the sidelines to steal a car at least 20% off blue book when the defaults get to 4% - it's coming just patience is required
There is a direct co-relation between the cost of food .... and the cost of crap .... FIFO !
".... and the cost of crap ...."
WHY? How much are your posts?
Sorry guys, I needed a new couch. My bad.
"provides more ammo"
well, ammo is what my husband has been buying. My 3.6 percent went toward standard Rex rabbits. Dual purpose (petting/snuggling!) but really meat and fur. Highly recommend!
Federal Reserve's goal of maximum debt. The media is pushing the spend till you drop notion as well.
We all know who owns the media these days.
Savings is a bad word to the Keynesian educated economist. Debt slavery is in.
My own surge in spending has been to buy food, water, PMs and lots of brass.
You forgot lead and magazines, but i think i understand.
That hassa of yours is flying straight... Money no better spent than what you have invested in ---
People bought-in to the Debt Jubilee idea > promptly ran-up the cards. LOL
May is GRADUATION month and my last graduated college. I got stuck taking 11 out to dinner(+$500) and hosted 17 for brunch the next day. Daughter got a few thousand in gifts and $$$$. Next door neighbor had a H.S. grad and hosted a party. Heard about several more. It was my biggest discretionary spend month this year as we travelled for the graduation. Our belt has been tighter all year but celebrated due to the graduation. Think thats something others still are willing to spend for. June looks to be back in the mode we were in Jan-April.
Yes no doubt lots are still in the consumption groove and not saving more most likely less as raises for those getting them are not even a 1/3 of the 7-8% inflation we are seeing across the necessities.
I've been thinking a lot lately about the distribution chain and the 72 hour rule. That's not to be confused with Medicare... Hopefully many here are taking precautionary measures as CHC outlined above. Something's brewing (seriously), and it ain't good...
I never knew that people had graduation parties.
I remember when I graduated, I got an unexpected gift: a used car. Ford Falcon. Maybe 8 or 10 years old. Perfect. Loved it.
(-: Should read...?
Electric Bills Surge Most Since August 2009 As Savings Rate Tumbles.
This release runs contrary to what most retailers are saying.
Those SLGBT witches of Bloomberg are so devious.
They celebrate increase of consumer spending, saying finally people spending money they saved due to lower prices of gas earlier this year. They forgot to mention that the money saved due to lower prices of gas earlier this year people was spent on higher gas prices now and over last month or two. In other words US consumer has no purchasing power.
The core consumer spending worshiped in time of rampant food and energy inflation as only true gauge of economy has been conveniently forgotten now.
Witches always worship gods that provide goods.The truth, intellectual and moral integrity never pays for face-lifts when they needed (every quarter) at MSM.
What the fuck do imbecilic fucktards have to do with witches? At least witches provide something of value in the way of healing potions and cool looking dolls and things.
It's worthless currency anyhow. Dump it on shit while it has some sliver of value. Good move peoples!
It's probably people just getting their tax returns back and putting a down payment on a car. Fuckin 69 bucks a month for a 2015...I mean even I'm tempted.