by Mish

The weak rise in spending is fresh on the heels of a weak 0.2% rise in January.

Personal income increased $57.7 billion (0.4 percent) in February according to estimates released
today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $44.6 billion
(0.3 percent) and personal consumption expenditures (PCE) increased $7.4 billion (0.1 percent).
Real DPI increased 0.2 percent in February and Real PCE decreased 0.1 percent. The PCE price index
increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent.
The increase in personal income in February primarily reflected increases in wages and salaries and
rental income of persons.
The decrease in real PCE in February primarily reflected a decrease in spending for services that was
partially offset by an increase in spending for nondurable goods.
Personal outlays increased $7.5 billion in February. Personal saving was $808.0 billion in
February and the personal saving rate, personal saving as a percentage of disposable personal income,
was 5.6 percent.

Real Spending Down Again

If the Fed expected consumers to spend more because consumers are confident or inflation is up, they were totally off base. For the second month consumer spending was negative.

This report is likely to take a bite out of first quarter GDP estimates.

Yesterday, I noted the Third Estimate of 4th Quarter GDP Increased Slightly to 2.1% thanks to increased consumer spending. It didn’t last.

Mike “Mish” Shedlock

Personal Income Flat, Consumer Spending Weak, Real Disposable Income Down

The BEA’s report on Personal Income and Outlays for November was not exactly what the cheerleaders expected or the Fed Wants.

Consumer Spending Barely Moves Despite Jump in Income: Deflationary Headwinds?

Today’s personal income and outlays report shows consumer spending rose 0.1% while income rose 0.4%. Prices fell 0.1% while core prices rose 0.1%.

Personal Income, Spending, PCE Inflation Up in April

Consumer spending and personal income increased by 0.4% in April, matching the Econoday consensus estimates.

Personal Income Jumps But Spending Weak

Personal income rose 0.4% in August but spending, both nominal and real, rose a weak 0.1%

Personal Income Up 0.1%, Spending Up 0.6%: What's the Problem?

Personal Income is up 0.1%, spending is up 0.6%. Real Disposable Income is up 0.1%, real spending is up 0.4%.

Consumer Spending +0.2% Prices +0.4%: Real Spending Declined 0.1%

Personal income rose 0.4% in January, but consumers only spent half of the boost.

Make Less, Spend More: Real Income Declines but Spending Jumps in March

The BEA finally caught up with the government shutdown. It released February and March spending and income data today.

Personal Income Up 0.2%, Smallest in 15 Months, Spending Up 0.4%

Personal income rose 0.2% in September, with real disposable income up only 0.1%. The CPI was up 2.0% year-over-year.

Disposable Income and Spending Jump: Real Income and Spending is Another Matter

Disposable personal income rose 0.4%, but real income rose only 0.1%. Real personal consumption expenditures were flat.