Charts of the Week
U.S. Real Personal Income and Spending
Chart of the Week for May 5, 2017 - May 11, 2017
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 April 2016 through March 2017.
Both measures were generally positive over the period, income had 11 positive months of growth while spending had nine. Over the 12-month period, spending and income rose by 2.8%. Although spending growth was negative for the first two months of 2017, economists noted the year-over-year spending growth was greater than Q1 2017 GDP growth, and expect wage growth and credit availability to help spending growth to continue. On the income side, wage growth in March 2017 was less than expected, but a drop in the inflation figures helped real incomes rise. Economists are hopeful that policy discussions including potentially lower tax rates will help income growth to continue.
Posted by: sarah_oz@yahoo.com
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