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Shedlock: Income Down, Spending Up As Stimulus Runs Out

Written by Lance Roberts | Oct 1, 2020

In the latest personal income and spending reports, income was down but spending was up even as stimulus measures run out.

income spending stimulus, Shedlock: Income Down, Spending Up As Stimulus Runs Out
income spending stimulus, Shedlock: Income Down, Spending Up As Stimulus Runs Out

Personal Income & Outlays

The Personal Income and Outlays, report for August 2020 shows increasing stress on consumers. 

Real PCE vs Real DPI 2020 Detail

income spending stimulus, Shedlock: Income Down, Spending Up As Stimulus Runs Out
income spending stimulus, Shedlock: Income Down, Spending Up As Stimulus Runs Out

Increasing Consumer Stress

income spending stimulus, Shedlock: Income Down, Spending Up As Stimulus Runs Out

Personal income decreased 2.7 percent while consumer spending increased 1.0 percent in August.

Real disposable income declined 3.5% while real spending rose 0.7%.

income spending stimulus, Shedlock: Income Down, Spending Up As Stimulus Runs Out

Stimulus Runs Out

The Covid $600 stimulus checks ended July 25.

The $300 stimulus checks ended September 5. 

For details, please see Trump’s $300 Lost Wage Assistance Benefit Ended in 10 States

Fiscal stimulus has has run its course.  Without more stimulus both stronger incomes and spending are at risk.

2020/10/01
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