The BEA'sIncome and Outlays Reportshows consumers have been tapping savings all year to support purchases.

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Consumers spent 2.6% more than a year ago. Incomes are up only 1.6% from a year ago. That pattern has repeated every month in the above table.

Real Disposable Income

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Savings Rate

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The numbers reflect averages. Those on the low end of the economic scale spend every penny they make, and then some.

In a related article, also consider Hurricane Impacts Abate: Real Income +0.3%, PCE +0.1%, Inflation +0.1%.

Mike "Mish" Shedlock