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Personal Income, Spending Increase By 0.3% In November As Savings Rate Dips To 5.5%
While we already knew last night courtesy of a leak by the BEA that personal spending in November rose by 0.3%, in line with expectations and up from a 0.1% increase the month before, moments ago we got the missing component, which was personal income, and at 0.3%, it too rose 0.3% in October, just above the 0.2% expected, but down from the 0.4% increase in October.
The total personal income for November, which hit a record $15.618 trillion, an increase of $44.4 billion, was primarily driven by a $37 billion increase in wages, of which $20 billion came from service producing industries, and $14 billion from goods-producing. The government added another $3 billion.
The offset was a $40 billion increase in Personal Consumption Expenditures, which rose as a result of a $24 billion jump in spending on goods and $16 billion on services.
The end result was that in November personal savings was $748 billion, a $9.4 billion decline from the $757 billion a month ago, which translates into a 5.5% savings rate, down from last month's 5.6%, however well above the average rate seen over the past 12 months as consumers continue to be unwilling to dip into their savings despite the so-called "gas" tax cut.
And while overall consumer spending appears to be indeed slowing down as manifested in the secular decline in GDP, one area that shows promise is"eating out" - at 4.6% of total spending, this was the highest in 20 years.
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The 29.5 hr/wk worker/fine payers.....will get us through this.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.wallstreet34.com
I spent substantially on .45, 9mm and 5.56 ... I believe I contributed and look forward to more.
I've thrown in the towel on waiting for lower prices for .22lr. I have bought prolly 2k rounds now at .09 cents (and a bit higher) per round. AND a new .22lr rifle for Christmas. But hey, I've always been willing to do my part; within reason.
The habitual need to participate in the "holiday shopping ritual" regardless of the financial position.
Psychotic. The cycle of relentless consumerism brainwashing is difficult to interrupt.
I went to several malls this past weekend and very depressing. Most do not have any Christmas decorations I guess so they don't offend some peeples sensibilities. Niemans was dismal Zero decorations. I guess they pray to allah that foreigners will buy there instead of traditional American shoppers.
Nordstroms was THE ONLY store that had Christmas music playing, Trees and all sorts of Christmas stuff hanging from ceilings, etc. Very pleasant atmosphere for American citizens but I suspect anathema to MENA peeples. In fact, Nordstroms was packaed compared to NM.
Extreme PC is another factor tearing America down. Thanks Barry and a hat tip to MSM for their part in brainwashing and dumbing down America.
It's not "savings," it's income less consumption. There is a difference.
The "eating out" index is facinating. It continues to rise even though the sheeple know that eating at Chipotle is not a good idea.