Growth in income and spending has been trending slower for the last six months and August showed continued weakness in spending (slowest annual growth since Aug 2016) but a slight uptick in incomes.
The savings rate was unchanged at 3.6% – the lowest since December…
But perhaps most noteworthy is the 0.1% MoM drop in real personal spending, the weakest since Jan 2016.
This is not the 3.1% GDP exuberance you were looking for!
Of course all of this comes with a big fat saveat from the government data-mashers:
The August estimates of personal income and outlays reflect the effects of Hurricane Harvey that made landfall in southeastern Texas on August 25th. BEA cannot separately quantify the total impact of the storm on personal income and outlays because most of the source data used to estimate the components of personal income and outlays do not separately identify storm impacts.
tim PCE missed
i think
via http://ift.tt/2yxflOf Tyler Durden