Thursday, October 1, 2020

Happy Every Economic Statistic in the World Day! 2. Real income declines sharply, spending continues to increase


 - by New Deal democrat

This morning’s second economic release was personal income and spending for August.

With the ending of some Congressional emergency unemployment payments, in August real personal income declined sharply, by -3.0%. Nevertheless it remains 1.4% higher than it was in February just before the pandemic hit:

Real personal consumption expenditures (spending), by contrast, improved again in August, up 0.7%:

Nevertheless it remains -4.0% below its level in February.

So, we have continued if decelerating improvement in spending, while income is fading.