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US household spending tumbles again while salaries have the smallest increase in 7 months

Fonte/Source, Zerohedge, After last month’s epic Personal Income and Spending data manipulation revision by the BEA, when, as we explained in detail, the household saving rate (i.e., income less spending ) was revised lower not once but twice, in the process eliminating $140 billion, or some 20% in household savings…

… there was only one possible thing for household spending to do in December: tumble.

And tumble it did, when as moments ago we learned that Personal Spending dropped in the month of December by a whopping 0.3%, the biggest miss of expectations since January 2014 and the biggest monthly drop since September 2009!

As a result, this is what the US income and spending picture looked like:

And, as we predicted last month, the savings rate surged from 4.3% to 4.9% in December, as the spending spree, all of which took place simply in Department of Truth seasonally-adjusted models, had to be normalized out.

But wait, there’s more. Because while spending cratered the most in 6 years (but.. but… gas-savings boost spending), the income picture was just as dire, and while Personal Income rose by 0.3% in December, above the 0.2% expected, the key component that everyone is, or should be, looking at, Wages and Salaries increased by a tiny 0.1%: the smallest monthly increase since May, and what’s worse, Goods-producing wages actually declined by 0.2% in December, driven by a drop in Manufacturing sector wages.

Fonte/Source, http://www.zerohedge.com/news/2015-02-02/us-household-spending-tumbles-most-2009-salaries-have-smallest-monthly-increase-7-mo



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