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Real Personal Spending Growth Weakest Since Feb, Savings Rate Rises
The good news, personal income rose a better than expected 0.4% MoM (flat to the previous month's revised lower growth). The 'meh' news, personal spending rose just 0.2% - meeting expectations - but slowing its growth dramatically from the 0.7% revised May data. And the bad news, real personal spending was unchanged in June, its weakest growth (or lack of it) since February.
This means the savings rate rose from 4.6% in May to 4.8% in June - its second lowest in 2015 (but increasing just as The Fed hopes for excape velocity consumption confirmed by their rate hikes in a circular logic fallacy).
Charts: Bloomberg
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that 0.2% was me. i've been spending like it's going out of style. this year has been outrageously profligate for some reason.
Those evil savers...
just if inflation 12% P/A..........Spending growth up 0.2% P/M
That is a 0.8% P/M contraction..............................in real terms and 9.6% P/A
Well, it's cold outside. I mean hot outside. You know what I mean, it's the weather.
Malicious spenders.
Note to Yellen.
Want to get personal income and spending up?
Put a fair return on interst rates. People will make more on their savings and spend the
interest income. Your policies have created the velocity of money to plummet, and the consumer to lock up.
Consumers that borrow cheaply and spend get card maxed out quickly. Low rates are only a quick fix...bump.
Debt is future consumption denied...and we are in the Fed's Designed Future.
If you don't spend it, .gov will spend it for you.
And send you the Bill .....................via taxes and to come bail-ins
http://oig.federalreserve.gov/sitemap.htm
People have to start saving to pay that excessive Obamacare fine/tax for next year. 2.5% of your gross adjusted income or $695.00(which ever is higher). Goodbye disposable income.
And how much has government spending increased? When will people learn - the only way this will stop is when we stop paying for this shit. Go off the tax grid as much as possible and force the correction sooner as it will only become more painful as the problem grows.
And from the other Bloomberg:
"Americans Kept Spending in June to End Better Second Quarter"
http://www.bloomberg.com/news/articles/2015-08-03/americans-kept-spendin...
Personally, I don't believe either. Gas prices sure as heck aren't cheap, even in Texas.