Raiding the Piggy Bank

Despite good job growth, consumer spending is growing faster than personal income, driving the savings rate down to 3.7%, the lowest rate in years. Why? Unemployment insurance income is falling. In Jan and Feb 551K jobs were created while 550K lost unemployment benefits. What’s going on is the wages these folks are earning aren’t much more than the UI they lost. I also bet personal income data will be revised up.

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