U.S. Personal Income and Spending
Chart of the Week for November 4, 2016 - November 10, 2016
On a monthly basis the U.S Bureau of Economic Analysis publishes data on U.S. consumers' income and spending. The Income Report measures household income received from employment and investments. The Spending Report measures expenditures on durable and non-durable goods and services. The chart above shows the monthly percentage change after inflation for each measure from October 2015 through September 2016.
Both measures were generally positive over the period, income had 10 positive months of growth while spending had nine. Over the 12-month period, spending rose by 2.4% while income rose by 1.9%. Economists have cited spending as the main driver of U.S economic expansion as spending was the largest contributor to GDP expansion in the third quarter. If labor markets tighten, and wage growth continues to improve, economists expect both spending and income to increase.
Posted by: sarah_oz@yahoo.com
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