After briefly up-ticking in July, US personal income was expected to drop 2.5% MoM and spending growth slow from +1.9% MoM to +0.8% MoM. It turns out things were better and worse than expected with incomes tumbling 2.7% MoM and spending rising 1.0% MoM...
As government handouts fade from history, income growth has slowed to +4.7% YoY and income growth has rebounded to be down just 1.9% YoY...
Private workers: -0.4%, vs -1.3% last
Government workers -0.8%, vs -1.6% last
But the income-spend mismatch sent the savings rate tumbling from 17.7% to 14.1% (the lowest since March and down 60% from the highs)..