US Personal Incomes Grow At Fastest Pace Since 2018, Spending Growth Slows
Amid all the carnage, a sliver of good news is that incomes jumped more than expected in January (+0.6% MoM vs +0.4% MoM) and while economists will be gravely disappointed spending rose less than expected (+0.2% MoM vs +0.3% MoM) prompting a healthy rise in the savings rate from 7.5% to 7.9%…
This is the biggest jump in incomes since Dec 2018 and spending growth was the weakest since Feb 2019…
Source: Bloomberg
On a year-over-year basis, December saw a big surge (due to Dec 2018’s stocks-market-plunge-driven collapse in spending) and January saw that give back some as incomes grew at 4.0% YoY…
Source: Bloomberg
Under the hood, the picture was mixed with private workers wage growth slowing compared to rising government worker wage growth…
Finally, we note that The Fed’s favored inflation indicator – PCE Core Deflator – rose to +1.63% YoY (though less than expected)…
Source: Bloomberg
Of course, all of this data is ‘old’ and hit before the impacts of Covid-19 really started.
Tyler Durden
Fri, 02/28/2020 – 08:40
via ZeroHedge News https://ift.tt/3aepimB Tyler Durden