US Personal Spending Growth Slows As Savings Rate Jumps Most Since March

Tyler Durden's picture

A broadly in-line-with-expectations print in US income and spending data (+0.4% MoM and +0.3% MoM respectively) hides a bigger problem for the consumption-driven US economy. For the first time since March, the savings rate increased as US consumers dared not spend above their means (up from 5.5% to 5.7%).

Year-over-year, US spending growth is slowing once again, despite a bounce in incomes...

 

Is this some oddly conservative behavior?

 

Pushing the savings rate higher for the first time since March...

 

This does not bode well for Q3 GDP for now with July off to a less exuiberant start.

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SomethingSomethingDarkSide's picture

Obviously, buy S&P futures.

VinceFostersGhost's picture

 

 

Savings Rate Jumps Most Since March

 

Impressive....given over 96 million don't have a job......and most that do can only work 29.5 hs/wk.

RiverRoad's picture

The savings rate, which can't be managed by the MSM, is the best and most honest poll of them all.  Americans know something is very wrong "out there".  They save when they are scared.

Got that Obama?

I am Jobe's picture

I guess the so called Social Media Econ is helping consumer spending . 

buzzsaw99's picture

i did a google search and everything is great according to them. /s

SomethingSomethingDarkSide's picture

"Hillary is healthy?  Oh, okay, thanks Big Brother!"

VinceFostersGhost's picture

 

 

Even if it's not....it's OK.....she's traveling in her own personal ambulance.

https://www.youtube.com/watch?v=fDpiYfdYb-w

Bobbyrib's picture

It couldn't be that bad. It's not like the economy is 66% consumer consumption, or anything. /sarcasm.

two hoots's picture

Yellen:  "We must get the consumer and companies spending and not saving. Wasteful spending, like government spending, is healthy for the economy.  How dare they get in the way of our programs?" 

VarenneRiver's picture

Saving 1s and 0s that will eventually be deleted off some hard drive...I'm guilty too. 

101 years and counting's picture

i cant help but wonder what the savings rate is for the bottom 90%.  about 0.1%?  and the top 1% is probably about 90% goes to "savings"?

drivenZ's picture

So in the ZH agenda handbook, is this good or bad?

Saving rate dives and ZH says people are drowning and can't save? Savings rate increases and ZH says Q3 GDP is in perile? I'm just trying to keep it all straight.  

SomethingSomethingDarkSide's picture

We here at ZH understand that you may have a lot of new feelings and may be experiencing a wide variety of 'changes' going on within you.

 

Please refer to the "Deflation of the Dollar since the Fed started", "Interest Rate Management since 1980's", and "Internet is not a happy place" pamphlets along the wall of your School Nurse's Office.

drivenZ's picture

"we", says the guy who's been on here for 5 months. ha. 

sgorem's picture

"US consumers dared not spend above their means," "despite a bounce in incomes," "oddly conservative behavior," "does not bode well,".....yeah, I'm fucking laughing, albeit less exuberantly, out loud.........

SomethingSomethingDarkSide's picture

"Bounce in incomes" they say! LOLOLOL

Whitmore's picture

Wifey Whitmore and I sat down to crack out our financial plan for the next few years. Moved some savings into the market and (finally) got serious about retirment accounts. Identified big ticket spending items to save for and student/car loans to paydown early, and just plan to stay settled in our frugal lifestyle.  

I'd consider us humble middle-class, and we manage to eek out a 45% savings rate. about 40% going to expenses (which have been chiseled and penny-pinched to hell so we consume as little as possible. At the end of the day we have 15% of income to use at our discretion which is PLENTY. 

Part of what drives me to save is:
1. that I HATE the quality of most normaly-priced goods, so I spend dollars second-hand on deals for high-quality shit that no one makes any more. I'll wait months for the right deal. I save more on better things, and I doubt that the spending I do makes it's way to economic figures. 

2. I've worked in the service economy as a teenager/young adult (mid-30's now), so I know what good service should look like. Most of the people i grew up working with in those places seemed to give a shit. The retail service sector used to be a place where young people acquire the character traits that make them pleasant, responsible, thoughtful etc. before they entered "real world" jobs (ussually held while obtaining an education). Now those are the ONLY jobs and people are stuck in them, end up with terrible attitudes, and the whole idea of "service" starts circling the drain.

 

/rant off.  

Walhei's picture

Too bad the Government does not think like the consumers!

the grateful unemployed's picture

no this is the 1% who have 99% of the savings. they are piling into safe accounts, annunities, stuff like that. meanwhile spending is the 99% who spend 1% of the money. they are tapped out