IPFS News Link • United States
US Savings Rate Plunges As Consumer Spending Soars By Most In A Decade
• https://www.zerohedge.com/news/2019-04-29/us-savinAfter lagged (govt shutdown) and mixed performances in the last two months, income and spending growth was expected to rebound notably in March (despite a weak signal from within the GDP data) and while income growth was lower than expected (+0.1% MoM vs +0.4% MoM exp), spending exploded...
Personal Spending rose 0.9% MoM (well above the 0.7% expected) and the biggest rise since August 2009...
On a year over year basis, spending has accelerated beyond income growth once again...
On the income side, wages unchanged from last month on an annual basis:
Private workers +4.4% Y/Y
Govt Workers +3.0% Y/Y
And as expected given the surge in spending, the savings rate collapsed from 7.3% to 6.5% - the lowest since November.