In the latest personal income and spending reports, income was down but spending was up even as stimulus measures run 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
Increasing Consumer Stress
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%.
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.
Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
Customer Relationship Summary (Form CRS)
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