Income and Spending

By Peter Boockvar - June 1st, 2009, 9:19AM

April Personal Income rose .5%, much better than expectations of a drop
of .2% while Spending fell .1%, .1% better than forecasts. The revisions
to March were modest. The factor in the surprise gain in income was
related to the Government’s stimulus plan where transfer payments rose
smartly and there was also reduced personal current taxes. The Commerce
Dept specifically said the income component “was boosted as a result of
provisions of the American Recovery and Reinvestment Act of 2009.” The
savings rate did rise to 5.7% from 4.5%, the highest since 1995 as a
result but it would have been nicer to see the gain come from legitimate
private sector income improvements. REAL spending fell .2% as the
headline PCE rose .1%. The core PCE rose .3% and the y/o/y gain rose to
the highest since Nov at 1.9%.

PERMALINK
Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Income and Spending”

FromLori Says:
June 1st, 2009 at 12:23 pm
http://market-ticker.org/archives/1076-Personal-Income.html

U.S. Debt $668,621 Per Household
No that’s not a typo: that’s the statistic according to USA Today. The folks over there have done some really great work this week with another interesting interactive chart attached to an article about the nation’s debt. If they keep this up, I’ll have to stop considering it a useless free newspaper I step over when leaving a hotel room. The numbers it reports are staggering.

Again, I wish I could include the interactive chart it shows, but it breaks down the $668,621 by various components of federal government debt ($546,668) and personal debt ($121,953). Presumably that means this astronomical figure does not even include state and local

http://business.theatlantic.com/2009/05/us_debt_668621_per_household.php

http://www.businessinsider.com/faber-100-sure-us-will-have-zimbabwe-style-hyperinflation-2009-5
FromLori Says:
June 1st, 2009 at 12:26 pm
One more addition…

Obama’s Lies On Economy Getting Out Of Control – Where Is The Job Creating Stimulus?

http://strata-sphere.com/blog/index.php/archives/9241
Personal Spending hits Perfect Storm | ZachStocks Says:
June 1st, 2009 at 1:06 pm
[...] Interest Risk and Reward – Lessons From the Last 18 Months Congress Sends Credit Cards A Message Ritholtz: Income and Spending Barron’s: Trimmer Sails, Dimmer [...]
CTB Says:
June 2nd, 2009 at 9:22 am
I guess the spam filter isn’t foolproof.