Shedlock: Income Down, Spending Up As Stimulus Runs Out

by Lance Roberts

In the latest personal income and spending reports, income was down but spending was up even as stimulus measures run out.

income spending stimulus, Shedlock: Income Down, Spending Up As Stimulus Runs Out

Personal Income & Outlays

The Personal Income and Outlays, report for August 2020 shows increasing stress on consumers.

Real PCE vs Real DPI 2020 Detail

income spending stimulus, Shedlock: Income Down, Spending Up As Stimulus Runs Out

Increasing Consumer Stress

income spending stimulus, Shedlock: Income Down, Spending Up As Stimulus Runs Out

Personal income decreased 2.7 percent while consumer spending increased 1.0 percent in August.

Real disposable income declined 3.5% while real spending rose 0.7%.

Stimulus Runs Out

The Covid $600 stimulus checks ended July 25.

The $300 stimulus checks ended September 5.

For details, please see Trump’s $300 Lost Wage Assistance Benefit Ended in 10 States

Fiscal stimulus has has run its course.  Without more stimulus both stronger incomes and spending are at risk.