Income and outlays data provide an important and frequent look into the state of our economy. Of course, income is, for the most part, a necessary condition for spending. Outlays, in the report on personal consumption expenditures (PCE) represents over two-thirds of our nation’s output. Both were mixed in October 2020 according to the Bureau of Economic Analy
Income and outlays improved in November 2019 according to the Bureau of Economic Analysis. The headline count for income gained 0.5 percent. Similarly, disposable income (after-tax income) was also up 0.5 percent. Further, inflation adjusted income gained 0.4 percent. No matter how you dice it, Americans had more money to spend. And their spending increased.
Echoes from the partial government shutdown persist. Income and outlays data from the Bureau of Economic Analysis were delayed for December and incomplete for January, so they were released together in one report. We have both income and spending to end the year, but just income data to start 2019.
When it comes to the American economy, the consumer is the primary driver. In order for consumers to push output ahead, they need income to spend.
Americans made more and spent more money in March 2018 according to the Bureau of Economic Analysis’ report on Incomes and Outlays. However, in typical American style, consumers spent faster than their incomes grew, so the savings rate suffered. Finally, inflation’s trend seems to be nearing the Federal Reserve’s explicit target.