Following government shutdown delays, data for Dec and Jan spending and income has just been released and its a bloodbath.
Confirming the collapse in retail sales that was called an outlier, December personal income fell 0.1% MoM (against expectations of a 0.3% rise) – the worst drop since Jan 2013; and personal spending plunged 0.5% MoM in January – the worst drop since Sept 2009…
On a YoY basis, spending grew 4.0% in December – the weakest since Aug 2017; and in January incomes grew 4.3% YoY – back to the flattest in two years…
The BEA decideds to leave half of their spreadsheet empty…
Additionally, real personal spending crashed 0.6% MoM…
That is the biggest drop since Sept 2009.
One thing is for sure – the collapse in the savings rate to placate the exuberance in spending confidence may have just hit a wall…
As the savings rate just soared… this is the biggest one-month jump in the savings rate in 56 years!
Is terrible news on America’s consumer, great news for the market? We shall see.
via ZeroHedge News https://ift.tt/2GPnDsU Tyler Durden