Spending Up Far More than Real Income: Per Capita Income Stagnates
The BEA's Personal Income and Outlays report shows personal income increased $54.0 billion (0.3%) in November.
Income and Expenditures Details
- Personal income increased $54.0 billion (0.3%)
- Disposable personal income (DPI) increased $50.9 billion (0.4%)
- Personal consumption expenditures (PCE) increased $87.1 billion (0.6%)
RealIncome and Expenditures Details
- Real DPI increased 0.1%
- Real PCE increased 0.4%
- The PCE price index increased 0.2%
- Excluding food and energy, the PCE price index increased 0.1%
Income vs Expenditures
For November, real expenditures rose 4 times faster than real income. Economists are happy about the spending, no matter how unsustainable the trend. A wealth effect is in play.
Per Capita Income
On a per capita basis, income has stagnated.
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Mike "Mish" Shedlock