Americans' Income Growth Slumps To Weakest Since November

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?


shimmy Tue, 08/01/2017 - 08:52 Permalink

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 Tue, 08/01/2017 - 09:13 Permalink

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.

Hume Tue, 08/01/2017 - 09:37 Permalink

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.

Mena Arkansas Tue, 08/01/2017 - 10:22 Permalink

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 Tue, 08/01/2017 - 10:45 Permalink

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..