Feb Personal Income was flat vs expectations of a gain of .1% but Jan was revised up by .2% of a pt to a gain of .3%. Because Spending rose .3%, in line with forecasts, the personal Savings Rate fell to 3.1% from 3.4% and to the lowest level since Oct ’08. While this can sustain short term economic growth, the long term health of the economy in a deleveraging world needs higher savings rates, especially with exploding public sector debt. The headline PCE price deflator was unchanged, therefore REAL income was flat with REAL spending was up .3%. The core PCE was also flat. Bottom line, the Fed will take comfort in the inflation statistics even though the energy component in particular will reverse higher in March but income growth running higher by 2% y/o/y with spending up 3.4% y/o/y can only last for so long with access to credit not what it used to be.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.