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

Income and Spending Decline, Savings Rate Increases

Real personal income and spending decline in May, while the saving rate increases (not good!) In May nominal personal income rose 0.5%, and spending rose 0.2%. But since the personal consumption deflator, i.e., the relevant measure of inflation, rose 0.6%, real income fell -0.1%, and real personal spending fell -0.4%. While both real income and spending […]