Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

US Spending Surges At Record Pace In May As Government Wages Crash

Courtesy of ZeroHedge View original post here.

Following the somewhat surprising surge (stimulus checks) in personal incomes in April (after March's collapse), May's income data was expected to fade as spending rebounded strongly (on the pent-up-demand after re-opening).

On a month-over-month basis, personal income did drop, but less than expected (-4.2% MoM vs -6/0% exp) but spending rose less than expected (+8.2% MoM vs +9.3% exp) – this was still the biggest surge in spending on record (since 1958).

Source: Bloomberg

Year-over-year, income growth slowed (as stimulus checks slowed) but spending's slump rebounded only modestly (remaining down a shocking 9.3% YoY)…

Source: Bloomberg

Note that personal income (ex-transfer receipts – i.e. stimulus checks) rebounded very modestly…

Source: Bloomberg

…as government handouts plunged by $1.1 trillion to $5.3 trillion…

In fact, on the income side of the equation, May saw the biggest drop in government wages on record…

All this chaotic noise has sparked massive volatility in the implied savings rate, which plunged back towards old normal (from 32.2% to 23.2%) but still remains extremely high…

Source: Bloomberg

Finally, we note that The Fed's favorite inflation indicator  – Core PCE Deflator – slowed even firther to +1.0% YoY (slightly hotter than the +0.9% YoY expected)…

Source: Bloomberg

Providing Powell and his pals cover to keep on pumping.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!