Relevant and even prescient commentary on news, politics and the economy.

June personal income and spending show pandemic cushion approaching depletion

June personal income and spending show pandemic cushion approaching depletion How well personal income and spending held up throughout the pandemic is one of the best things about the government response. For June, nominal personal income increased 0.1%. After inflation, however, it decreased -0.4%. Nominal personal spending increased 1.0%. After inflation, it still increased 0.5%. […]

Real personal income has completely made up its recession losses, now exceeds pre-recession peak

Real personal income has completely made up its recession losses, now exceeds pre-recession peak The last of the 4 monthly coincident markers for whether the economy is in recession vs. expansion was reported this morning for April. Let’s take a look. In nominal terms, personal income declined -13.1%, taking back most, not by no means […]

February personal income and spending decline

February personal income and spending decline: the back end of January stimulus payments Last month I wrote that the: “report on January personal income and spending shows just how important the stimulus packages enacted by the federal government both last spring and last month have been to sustaining the economy.” The truth of that was […]

Not quite enough to start a “double-dip” recession

Real personal spending declines in December, while income rises; not quite enough to start a “double-dip” recession This morning’s report on personal income and spending for December reversed the pattern we have seen all during the second half of 2020. After rebounding strongly for 6 months, real personal spending (blue in the graph below) declined […]

Personal income declined

Hat tip Calculated Risk: •From the BEA:Personal Income for Metropolitan Areas, 2009 Personal income declined in 2009 in most of the nation’s metropolitan statistical areas (MSAs), according to estimates released today by the U.S. Bureau of Economic Analysis.The per capita income in my MSA fell 3.8% last year.