Americans' Income Growth Slumps To Weakest Since November

Tyler Durden's picture

After last week's revised BLS data showed desperate Americans saving the least since the recession...


It is perhaps no surprise that personal income growth ended in June (0.0% MoM) missing expectations and falling to its lowest level since November. Spending growth also slumped (has not been weaker since August).

Income was disappointingly unchanged in June, weaker than expected, while nominal spending was up 0.1%, as expected. Adjusted for inflation, spending was unchanged in June. Consumer spending was up 2.8% in Q2, as reported in the advance GDP report last Friday. Looking ahead, we expect Q3 real PCE to be up around 2.4% and estimate a 2.6% gain in Q3 GDP. PCE Price indexes continue to be below the Fed's 2% target.

Overall, real personal spending growth stalled...


All this weakness probably explains why stocks are soaring to record highs and why The Fed wants to keep hiking rates?

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Countrybunkererd's picture

This is the only set of charts I can trust over about the last 6 months.  Mainly because I hear this from REAL people every single day.

SubjectivObject's picture

Expensive boomers getting lopped off as circumstances permit, while Xers, Mills, and H/F1beebees taking desperation wages for whatever positions remain after automation takes its contemporaneous bite.

ludwigvmises's picture

Wait didn't Trump say all is well and Dow is at record highs?

PontifexMaximus's picture

who needs income when the markets are making every day new highs, we are all rich

FreeShitter's picture

Bernanke also said we were not in a housing bubble.

yogibear's picture

There isn't that much more the 1% can rape from the 99%.

aliens is here's picture

Nobody cares about the working people. Bezo is 2nd richest man on earth that's what it counts.

JackMeOff's picture

Nothing to see here - all is well.... NOT!

shimmy's picture

But president pumpkin told me everything is awesome so this can't be true as he'd never blow (or in his case, 'tweet') smoke up one's ass.

Bill of Rights's picture

How soon we forget you fucken shill

Obama To Middle America: The Economy Is Doing Great, And If You Don't Think So, You're Dumb

A. Boaty's picture

Do I detect a low interest rate bias here?

Bill of Rights's picture

What that famous saying I been hearing from the Ants for the last 45 years? oh ya " The stock market, na I don't follow that silly thing "

There's your answer. so Trump is in fact CORRECT. Just because the many are too stupid to invest and would rather buy booze and do drugs is no one fault but their own.

Snaffew's picture

do you mean invest...or gamble?  It looks to me like black has come up on the roulettel wheel 30,000 times in a row and now 90 percent of the "investors" are betting on black again even though there is only a 48 percent chance of black turning up.

Too-Big-to-Bail's picture

Since November? Wake me when it's since Lehman!

Hume's picture

The drop in income was not due to wages - those were up .4%.  Dividend payments cratered, which caused the fall.  Not sure "working people" are stressing about their stock dividends.

actionjacksonbrownie's picture

What is this income "growth" you speak of? There are almost 100 million people out of work - and their income is growing?

Mena Arkansas's picture

So is it "desperate americans" and I need to hunker down and horde every cent?

Or is it "the market is at an all time high" and I need to party like it's 1999?

Zorba's idea's picture

How about the rest of the is Discretionary Income these days for those fortunates to have jobs? Cat got your tounge? I wont bother you with the 100 million US unemployed..