Friday, December 1, 2017 4:07 AM EDT
The BEA's income and outlays report shows Real Disposable Income is up 1.6% from a year ago. Spending is up 2.6%.
The BEA's Income and Outlays Report shows consumers have been tapping savings all year to support purchases.
Consumers spent 2.6% more than a year ago. Incomes are up only 1.6% from a year ago. That pattern has repeated every month in the above table.
Real Disposable Income
Savings Rate
The numbers reflect averages. Those on the low end of the economic scale spend every penny they make, and then some.
In a related article, also consider Hurricane Impacts Abate: Real Income +0.3%, PCE +0.1%, Inflation +0.1%.
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Disclaimer: The content on Mish's Global Economic Trend Analysis site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
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