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

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 their job outlook, and…