Updated: 29-Sep-17 09:20 ET
| August Personal Income and Spending |
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| Updated: 29-Sep-17 09:20 ET |
Highlights
- There was some fresh economic data this morning in the form of the Personal Income and Spending report for August, but when you dig down into that report, it wasn't entirely fresh.
Key Factors
- Personal income, which was repressed by no growth in the wages and salaries component, increased 0.2% (Briefing.com consensus 0.2%)
- Personal spending, which was repressed by a 0.2% decline in spending on goods, increased 0.1% (Briefing.com consensus 0.1%)
- The PCE Price Index increased 0.2% (Briefing.com consensus 0.3%) and the core PCE Price Index increased 0.1% (Briefing.com consensus 0.2%)
- On a year-over-year basis, the PCE Price Index was unchanged at 1.4% while the core PCE price Index dipped to 1.3% from 1.4%, further complicating the inflation picture for the Federal Reserve
- Real disposable personal income decreased 0.1%, as did real PCE, which will be a drag on third quarter GDP growth forecasts
- The personal savings rate was unchanged at 3.6%
Big Picture
- The key takeaway from the report is that it was more of the same: weak income growth, disappointing spending growth, and continued "lowflation."
| Category | AUG | JUL | JUN | MAY | APR |
| Personal Income | |||||
| Total Income | 0.2% | 0.3% | 0.0% | 0.3% | 0.1% |
| Wage and Salary | 0.0% | 0.5% | 0.4% | 0.1% | 0.6% |
| Disposable Income | 0.1% | 0.2% | 0.0% | 0.4% | 0.2% |
| Savings Rate | 3.6% | 3.6% | 3.7% | 3.9% | 3.7% |
| Personal Consumption | |||||
| Total (Nominal) | 0.1% | 0.3% | 0.1% | 0.2% | 0.3% |
| Total (Real, Chain $) | -0.1% | 0.2% | 0.1% | 0.3% | 0.1% |
| Core PCE Deflator | |||||
| Month/Month | 0.1% | 0.1% | 0.1% | 0.1% | 0.2% |
| Year/Year | 1.3% | 1.4% | 1.5% | 1.5% | 1.6% |