This morning we got to see the Commerce Department’s results showing a gain of +0.5% in income and a drop in spending of -0.1%. We had estimates from Bloomberg at -0.2% on income, and -0.2% on spending. It seems those who are keeping their jobs are making more money and they are still spending better than expected. Disposable personal income also showed a gain of +1.1%.
Saving as a percentage of disposable income came in at a reading of 5.7%. That looks the highest reading in over a decade. Saving is great for individuals and their security in the future, but to much savings means too little spending for economic growth models ahead.
JON C. OGG
