Consumer Spending Growth Exceeds Income Growth.

Personal Income and Outlays (June 2016)

– Personal Income month/month +0.2%. Previous was +0.2%
– Consumer Spending month/month +0.4%. Previous was +0.4%
– PCE Price Index month/month +0.3%. Previous was +0.2%
– Core PCE price index -month/month +0.1%. Previous was +0.2%
– PCE Price Index year/year +0.9%. Previous was +0.9%
– Core PCE price index year/year +1.6%. Previous was +1.6%

The increase in spending by the consumer once again exceeds the increase in income. This either means less saving or more debt either of which will be problematic at some point in the
future.

 

Redbook Chain Store Sales (week ended 7/30/2016)

– Chain Store Sales year/year +0.3%. Previous was +0.6%