This is not what the American Dream is made of... US consumers got a generous 0.4% rise in incomes in April - better than the 0.3% expectation - but none of it was spent! Personal Spending was unchanged - missing expectations for the 5th month of last 6. What this means is obvious, Americans are saving more (savings rate surged from 5.2% to 5.6%) and spending less... this is not the wealth effect creating 70%-of-GDP-consuming world that The Fed's textbooks say it should be...
5th miss of last 6 months in spending... despite all those low gas price tax savings..
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Even as income rises...
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As the savings rate surges...
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Finally Personal Consumption Expenditure - amonth The Fed's favored gauges of success - dropped to its lowest since Feb 2014 and missed by the most since September 2010.
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Surely spending in April was crushed due to the inclement sunshine.
