Table 10 Is a Hot Spot

Something stood out in the economic data this past week and we’re not talking about the standout employment report for July. We’ll get to that in a bit.
The thing that stood out to us was found in the Personal Income and Spending report for June. Actually, it was found deep down in the report – in Table 10 to be exact – where few outside observers might dare themselves to go.
Table 10 might be the hot spot at your local restaurant, but in the aforementioned report, it was a hot spot of differentiation in the year-over-year pace of real disposable income growth and real personal consumption expenditures (PCE) growth.
One is growing faster than the other and, by doing so, some big picture questions are being raised about where the US economy may be headed.
Income Is the Driver
There is a close correlation between income growth and spending growth. When income growth accelerates, spending growth typically does, too, and when income growth decelerates, spending growth typically follows.

This post was published at FinancialSense on 08/08/2016.