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.
PCE Price Index
Incomes and outlays improved to start the second quarter of this year according to the Bureau of Economic Analysis. Personal income rose 0.3 percent in April 2018, and spending jumped 0.6 percent. Disposable personal income (DPI), aka after-tax pay, rose 0.4 percent or $60.9 billion, leading to some decay in the nation’s savings rate.
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.
Personal income and spending each improved to end 2017, but their rates of change were different. Americans’ pay managed to grow just 0.3 percent while outlays increased 0.5 percent. Additionally, there was a key revision to the prior period’s tally as outlays actually increased 0.8 percent (originally 0.6 percent), but November’s income tally remained as initially
Personal income rose 0.4 percent in September 2017 according to the Bureau of Economic Analysis. This $66.9 billion uptick accelerated from August’s increase of 0.2 percent. Likewise, disposable personal income, aka after-tax pay, improved 0.4 percent. Americans used the additional take-home pay to partially fund their 1.0 percent increase in consumption. Since out
Data from the Bureau of Economic Analysis (BEA) on Income and Outlays was short on good news for June 2017. As the first half of this year came to a close, there was no change to the national income figure versus a month earlier. As one might presume, this stunted consumption’s growth in the period, rising just 0.1 percent.