Robust spending, increasing income and the re-establishment of price stability amid strong productivity gains are the primary factors shaping the economic narrative. American households are well positioned to keep spending at a 3% to 3.5% pace as inflation moves back to 2% and real wages continue ... READ MORE >
personal income and spending
Fed’s key inflation gauge continues to cool in May as income increases by 0.5%
The Federal Reserve’s preferred measure of inflation continued to ease in May as the personal consumption expenditures Index remained unchanged on the month and rose by 2.6% from a year ago. The core PCE index, which excludes the more volatile food and energy components, advanced by 0.1% and increased ... READ MORE >
Spending remains strong as a key inflation gauge declines toward Fed’s target
Inflation dynamics to close out last year strongly point to a near-term return to the Federal Reserve’s 2% inflation target amid a solid labor market, strong spending and real income gains. While both top-line and core inflation are rapidly advancing toward the Fed’s target, inflation-adjusted ... READ MORE >
Excess savings are critical to the economic expansion’s duration
The American economy has shown resilience in the face of rising interest rates as consumers, bolstered by excess savings built up during the pandemic, have continued to spend. But how long can these savings last? According to our analysis of revised data from the Bureau of Economic Analysis, ... READ MORE >
Personal spending grows hot in July as inflation stabilizes
American consumers remained in a position of strength on spending and income growth this summer as inflation stabilized further and the labor market stayed resilient. July's personal spending surged by 0.8% while personal income grew by 0.2%, the Bureau of Economic Analysis reported on Thursday. With ... READ MORE >
Spending remains steady on strong income growth and inflation relief
U.S. personal income and spending in July signaled a gradual rebound of the economy in the third quarter after six months of declines in gross domestic product. The catalyst was a combination of a tight labor market with steady wage income growth and a sharp drop in inflation on the back of falling ... READ MORE >
Consumers spent more in March despite rising inflation
American consumers defied rising inflation and market uncertainties in March, continuing to spend more on goods and services as their wages increased and they saved less. Personal spending rose by 0.2% in March on an inflation-adjusted basis, following an upwardly revised 0.1% increase in February. The ... READ MORE >
Personal spending and income rose in October, beating expectations
October's personal income and spending data released by the government on Wednesday gave more reasons to end the short Thanksgiving week on a good note. Personal income rose by 0.5% on the month, beating expectations of a 0.2% increase, while spending rose by a sharp 1.3% in October on a dollar basis. ... READ MORE >
Personal spending grew in September despite mitigating factors
Personal spending grew in September for the second straight month as the extra income from the enhanced Child Tax Credit program continued to offset the impact from the delta variant on consumption demand. The headline spending number rose 0.6% on the month, following an upwardly revised 1.0% in ... READ MORE >
Spending posted strong gains in August, a boost from the enhanced child tax credit
Personal spending rose by 0.8% in August, following a downwardly revised decrease of 0.1% in July and showing the strong impact of the extra incomes from the enhanced child tax credit that began in July. The direct payments to families from the tax credit helped to offset the continuing decline in ... READ MORE >