Why is Spending Not Keeping Up with Income? It Is Not Because Of Cautious Consumers

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Harrison Roger
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Disposable Income - Today's Personal Income figure came in at 4.4% today (year-over-year).  The consensus-meeting figure is decent, although down from the recent 5% peak in July of this year.

In addition to the top-line Personal Income figure, the Bureau of Economic Analysis releases a number of sub-estimates and related figures, one of which is Personal Spending.

Personal Spending came in at a fairly weak 3% (year-over-year).  The incredibly weak Personal Spending compared to moderate Personal Income has economists wondering - why?

Why is spending not growing as quickly as income?

Perhaps individuals are nervous about...

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Roger is an economic adviser and active angel investor. He owns various economics firms. His work allows him a diverse group of clients across the globe, including the United States, Europe, and Asia. He holds a Ph.D. in business economics.

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