American’s spending turned negative in June (-0.2%) for the first time since September 2009. Without government largesse (personal transfer receipts) personal income would have declined. Personal income increased $18.7 billion, or 0.1 percent…Personal current transfer receipts increased 9.5 billion, in contrast to a decrease of $1.4 billion. Government largesse is 51% of income growth.
The BEA revised 2009 and 2010 personal income sharply lower. Yes, once again US beancounters overstate economic strength for years and the Street is mum on the scheme.
Personal income was revised up $69.1 billion, or 0.6 percent, for 2008; was revised down $244.7 billion, or 2.0 percent, for 2009; and was revised down $167.5 billion, or 1.3 percent, for 2010.
Disposable personal income (DPI) (personal income less personal current taxes) was revised up $71.6 billion, or 0.7 percent, for 2008; was revised down $246.1 billion, or 2.2 percent, for 2009; and was revised down
$195.0 billion, or 1.7 percent, for 2010
http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm
We have screamed for years that jobs & income are the key economic indicators. Everything else is just background music. The average American continues to experience worse economic conditions that most of Wall Street and DC realize or understand.
Americans on food stamps jumped 1.1 million in May to 45,753,078 from 44,647,861 (+12/1% y/y).
http://www.fns.usda.gov/pd/29SNAPcurrPP.htm
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