Dollars and Jens
Monday, June 01, 2009
income and spending
Personal income was up in April but spending was slightly down. Employee compensation reported a month-over-month increase for the first time in a while, which may be the more heartening statistic, if you consider that "transfer receipts" are a big contributor to the increase in the headline number, and that those include unemployment insurance payments (which are, after all, income). The personal savings rate is reported at 5.7%. Of course, even those of us who generally advocate for more saving by Americans would rather this turned into domestic investment and a smaller trade deficit than a government deficit. It will be interesting to see how these different figures change if and when the economy recovers.


Powered by Blogger