• 3 hours Trump Tweet Sends Oil Soaring 25%
  • 20 hours Why The Coronavirus Economic Crash Is Worse Than You Think
  • 1 day Is A Global Currency Necessary?
  • 2 days America Has Shed 500,000 Millionaires Since The Coronavirus Lockdown Began
  • 2 days Trump Wants Another $2 Trillion Economic Intervention
  • 3 days The Surprising Businesses Deemed “Essential” During The Coronavirus Lockdown
  • 3 days Priceless Van Gogh "Spring Garden" Painting Stolen
  • 3 days Oil Falls To $20 For First Time In Nearly Two Decades
  • 3 days COVID-19 Could Be The End Of U.S. Coal
  • 4 days How Much Does Your Social Security Number Cost? $4 On The Dark Web
  • 5 days Silver Stocks Have Been Decimated In The Coronavirus Sell-Off
  • 6 days How Blockchain Tech Could Make Mergers And Acquisitions More Efficient
  • 6 days America’s Shortage Of This Metal Keeps Trump Up At Night
  • 7 days Bidet Bonanza: Defying The Toilet Paper Shortage
  • 7 days U.S. Auto Sales Fall By 75%
  • 8 days Violating Quarantine? Big Brother Is Watching
  • 8 days Does Gold Still Have Some Room To Run?
  • 8 days Major Acquisition Gives The World’s First Green Ride-Share Another Edge
  • 9 days U.S. Pushes For Digital Currency For Immediate Stimulus
  • 9 days The Impossible Challenges Created By Growing Population
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Personal Income Up But Real Consumer Spending Declines Second Month

The BEA's Personal Income and Outlays report shows personal income rose 0.4% but consumer spending rose a scant 0.1% in February.

The weak rise in spending is fresh on the heels of a weak 0.2% rise in January.

Personal Income and Outlays

Personal income increased $57.7 billion (0.4 percent) in February according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $44.6 billion (0.3 percent) and personal consumption expenditures (PCE) increased $7.4 billion (0.1 percent).

Real DPI increased 0.2 percent in February and Real PCE decreased 0.1 percent. The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent.

The increase in personal income in February primarily reflected increases in wages and salaries and rental income of persons.

The decrease in real PCE in February primarily reflected a decrease in spending for services that was partially offset by an increase in spending for nondurable goods.

Personal outlays increased $7.5 billion in February. Personal saving was $808.0 billion in February and the personal saving rate, personal saving as a percentage of disposable personal income, was 5.6 percent.


Real Spending Down Again

If the Fed expected consumers to spend more because consumers are confident or inflation is up, they were totally off base. For the second month consumer spending was negative.

This report is likely to take a bite out of first quarter GDP estimates.

Yesterday, I noted the Third Estimate of 4th Quarter GDP Increased Slightly to 2.1% thanks to increased consumer spending. It didn't last.

 

Back to homepage

Leave a comment

Leave a comment