Friday , July 10 2020
Home / Hale Stewart: Bonddad Blog / April personal income and spending: considering the extreme circumstances, a good report

April personal income and spending: considering the extreme circumstances, a good report

Summary:
- by New Deal democratApril personal income and spending, reported this morning, showed the impact of both the lockdowns and the stimulus that was passed by the Congress. To cut to the chase, spending in real inflation-adjusted terms declined -13% (red), while real income rose 11%(blue): Unlike the recent jobs report, this is not a byproduct of the layoffs that were concentrated in the lower wage sector, which changed the composition of the labor force. Rather, this is an aggregate number, meaning that total income for everybody, adjusted for inflation, rose 11%As a result of the combination, the personal savings rate rose by 20%: Depending on what happens with the intensity (or not) of “safer-at-home” orders in the future, and whether or not there is any further stimulus

Topics:
[email protected] (New Deal democrat) considers the following as important:

This could be interesting, too:

Bull Markets writes Bull Markets 1970-01-01 00:00:00

Tyler Durden writes US Reports Another Record Single-Day Jump In COVID-19 Infections: Live Updates

Tyler Durden writes Venezuelan Fighter Jets “Neutralize” US-Registered Aircraft

Tyler Durden writes The Fragility Of The Woke


 - by New Deal democrat

April personal income and spending, reported this morning, showed the impact of both the lockdowns and the stimulus that was passed by the Congress.


To cut to the chase, spending in real inflation-adjusted terms declined -13% (red), while real income rose 11%(blue):

April personal income and spending: considering the extreme circumstances, a good report

Unlike the recent jobs report, this is not a byproduct of the layoffs that were concentrated in the lower wage sector, which changed the composition of the labor force. Rather, this is an aggregate number, meaning that total income for everybody, adjusted for inflation, rose 11%

As a result of the combination, the personal savings rate rose by 20%:


April personal income and spending: considering the extreme circumstances, a good report

Depending on what happens with the intensity (or not) of “safer-at-home” orders in the future, and whether or not there is any further stimulus enacted by Congress (looking increasingly unlikely), this will either have to tide over the 20%+ of the labor force that has filed for unemployment in the last two months, or will serve as fuel for robust consumer spending once people feel it is safe to resume relatively normal activities.

Given the extreme circumstances, this was a good report.

Leave a Reply

Your email address will not be published. Required fields are marked *