U.S. Consumer Spending Rose 0.4% in July

[question everything]

Americans spent all of their income gains and then some in July, keeping the economy humming in the second half of year.

Household spending—or what Americans paid for all goods and services, such as groceries and health care—rose 0.4% in July, the Commerce Department said Thursday. That marked another healthy gain after months of strong growth.

The increase partly reflects higher prices that businesses are charging for their items, itself a sign that demand in the economy is strong.

(snip)

Also, the booming stock market and rising home values are raising Americans’ wealth, which tends to encourage them to spend more and save less.

The fact that spending rose faster than income shows how confident Americans are in the economy these days. After accounting for inflation, consumer spending rose 2.8% in July, compared with the same month a year ago—an annual gain last exceeded in March 2017.

More..

https://www.wsj.com/articles/u-s-consumer-spending-rose-0-4-in-july-1535632480 (paid subscription)

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This is the result of a service based economy. For it to grow, consumers have to go into debt and to save less..

[Wellstone ruled]

1. When you raise Gas prices by a buck,

wow,and Wal Mart and Kroger did a ten per cent pass thru,well there you are.

[yallerdawg]

2. If everything costs more...

the WSJ is right - the average American DID spend "all of their income gains and then some!"

Higher prices charged by businesses is a sign that demand is strong?

More "1984" double-speak.

[sandensea]

3. After inflation, that would probably be zero or close to it.

As you've no doubt noticed, there's been a new round of price increases this summer on a variety of goods.

[at140]

4. NO! CPI says only 2.9%

According to our government inflation is tame.

[sandensea]

5. I'll throw you one worse:

Last edited Sat Sep 8, 2018, 06:49 PM - Edit history (1)

Remember CPI readings during Bush's disastrous second term?

It was almost always "3.3%"

Whatever inspired that figment of their imagination, it certainly wasn't the reailty on the ground - particularly in '05 and '08 (double digits in both those years, you may recall).

A nod to his Masonic brethren, perhaps?