Personal income decreased $1,516.6 billion (7.1 percent) in February according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) decreased $1,532.3 billion (8.0 percent) and personal consumption expenditures (PCE) decreased $149.0 billion (1.0 percent).You will see all of that “decline” in income came from stimulus payments being recorded in January, and no stimulus going out in February. But the down side of this is that wages and salaries were flat in February, which leaves us below the total of wages and salaries that we had in February 2020 – before inflation is accounted for, mind you. BEA’s blog summarizing the income and spending report has this interesting chart, which illustrates how spending on most goods (outside of oil/gas) has gone UP in the COVID World.
Friday, March 26, 2021
Lower income/spending in Feb not a concern. But 12 months of COVID World has major changes
As December’s stimulus bill faded, we saw US income and spending totals regress back toward where they were at the end of 2020.
Posted by Jake formerly of the LP at 7:57:00 PM