After the extreme surge in income and spending in January (as government handouts gushed across the nation), analysts expected February to see some give back (more on the income side than on the spending side) - they were right.
Americans' income fell 7.1% MoM in February (-7.2% exp) vs the 10.1% (revised up) rise in January.
Americans' spending fell 1.2% MoM in February (-1.0% exp) vs the 3.0% (big upward revision) jump in January.
That is the largest MoM decline in Americans' income on record.
On a year-over-year basis, spending remains lower and while income growth tumbled, it is still up 4.3% YoY...
Wages fizzled (so it;s a good job we got all that free money from Washington eh?)...
private sector wages +0.5%, down from 1.6%
government wages -2.7%, down from -2.3%
All of which means the savings rate tumbled from 19.8% in Jan to 13.% in Feb...
... as the Dec stimulus was spent but ahead of the March Biden stimulus.
What would the US 'economy' be without trillions of handouts from our overlords?
21% of all income was in handouts from the government, down from 26.9% in January...
Just wait for this to explode to record highs after the latest stimulus bill handouts hit the data.