• 8 hours Hawkish Fed Sends Gold Prices Crashing
  • 1 day Bezos Is Heading To Space This Sunday
  • 5 days El Salvador’s Surprise Bitcoin Move
  • 8 days Markets Unfazed As Inflation Hits 13-Year High
  • 8 days How the Token Economy is Disrupting Financial Markets
  • 10 days FBI Investigating 100 Types Of Ransomware Attacks
  • 12 days Fed Ends Corporate Credit Emergency Lending Program
  • 14 days AMC Becomes the Latest Winning Meme Stock After GameStop
  • 16 days The Real Reason Your 401k Has Been Lagging
  • 16 days China Lifts Cap On Births, Allows Three Children Per Couple
  • 18 days The Market Is Ripe For Another GameStop Saga
  • 21 days Senate Grills Big Banks Over Pandemic Opportunism
  • 23 days Cannabis Has A Major Cash Problem
  • 23 days Ransomware Netted Criminals $350M In 2020 Alone
  • 24 days Russia Is Taking On Google
  • 25 days Chinese Regulators Deal Another Big Blow To Bitcoin
  • 27 days Ohio Residents Brave Vaccine for Chance To Win $1M
  • 28 days Inflation Is Coming. Are You Prepared?
  • 29 days Travel Might Get Another Supersonic Disruption
  • 30 days The World Is Running Out Of 6 Key Resources
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  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