Via ZeroHedge
Americans’ personal incomes and spending were expected to increase MoM in September (on a nominal basis) and they did with spending rising more than expected (+0.6% MoM vs +0.5% exp)
Source: Bloomberg
On a YoY notional basis, spending continues to outpace income growth significantly, but both are slowing…
Source: Bloomberg
On the income side, private worker wage growth is slowing rapidly:
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Private wages up 8.1% in Sept, down from 8.5% in Aug and the lowest since March 21
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Govt wages up 4.2%, unch from Sept, and the lowest since July
Source: Bloomberg
But, on a real, inflation-adjusted basis, incomes continue to shrink while spending remains marginally higher…
Source: Bloomberg
All of which means the savings rate plunged to multi-decade lows at 3.1%, just shy of the record low 3.0%…
Source: Bloomberg
But, but, but, the economy is “strong as hell”?
