Article Image
News Link • Economy - Economics USA

Consumption And Spending Both Miss Estimates As Double Dip Nears

• ZeroHedge.com & Market-Ticker.denninger.net
 
The US consumer is done (there are only so many iPads a bankrupt mortgage holder can buy), and no matter how fast the Dow hits 36,000, nothing will change this. ......................... Personal income increased $3.0 billion, or less than 0.1 percent, and disposable personal income (DPI) increased $5.1 billion, or less than 0.1 percent, in June, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $2.9 billion, or less than 0.1 percent. Uh huh. Nothing. A goose. Nada. Nil. Zilch. Zip. Why? Private wage and salary disbursements decreased $5.2 billion in June, in contrast to an increase of $19.2 billion in May. Goods-producing industries' payrolls decreased $8.9 billion, in contrast to an increase of $10.4 billion; manufacturing payrolls decreased $6.0 billion, in contrast to an increase of $7.8 billion. Oh. Manufacturing went in the toilet. Total protonic reversal. Services-producing industries' payrolls increased $3.7 billion, compared with an increase of $8.8 billion. We still count HFT market-rigging as "services"; that makes sense. Government wage and salary disbursements decreased $0.6 billion, in contrast to an increase of $7.0 billion. You mean the government is running out of money (really, borrowing capacity) too? Personal current transfer receipts increased $7.2 billion, compared with an increase of $6.0 billion. Well, maybe not. After all we can't actually cut back on government enTITlement suckling - that would be a true tragedy! Proprietors' income decreased $4.4 billion in June, in contrast to an increase of $2.2 billion in May. Exactly - and squares with my previous Ticker on Gallup's survey. Personal current taxes decreased $2.0 billion in June, in contrast to an increase of $3.6 billion in May. You ain't making it, you're sure not paying taxes on income you're not earning. That's simple. Personal saving -- DPI less personal outlays -- was $725.9 billion in June, compared with $713.9 billion in May. Personal saving as a percentage of disposable personal income was 6.4 percent in June, compared with 6.3 percent in May. CNBS' LIESman, of course, calls this "savings", as does the BEA. That's BS - notice the methodology - income less personal expenditures. What's missing? Paying down debt. That's right - paying your obligations that you used to pull forward demand isn't debt service; LIESman and the rest of the media (along with government) call debt service saving. Such persistent BS leads one to question their faith, as certainly if there a God he would arrange for a meteorite or lightning bolt to intersect some of these clown's paths. But I digress..... In a "hope you weren't looking" revision mania, the BEA revised all the way back to 2007. Note that in 2008 and 2009 revisions decreased proprietor income (that is, small business, while government handouts were revised up - nothing like understating the suckling while people are looking, then telling the truth later on.) The same revision process revised down actual outlays - that is, spending. The particularly-large revision - $79 billion, or about 0.5%, was made to 2009. "Savings" rate? Revised up huge all three years. But remember, in the words of the government, if you're not blowing your income on hookers, booze and iPhones, that's "savings" - even if you're paying off last month's hookers and booze. All-in-all this is a weak report and the revisions make clear that the endemic lying that has infested our government "statistics" shows no sign of abating, rendering the so-called "statistics" essentially a Goebbels-style market-manipulation device.

Join us on our Social Networks:

 

Share this page with your friends on your favorite social network:


Purse.IO Save on All Amazon Purchases