Aug
30
Economy Watch: Better Incomes Means More Spending
ByJuly marks the fourth month in a row in which consumers spent more than the previous month.
Source: Bureau of Economic Analysis, Personal Income and Outlays, July 2016
More good news for retailers and the landlords who lease to them: U.S. personal income increased $71.6 billion (0.4 percent) in July, according to the Bureau of Economic Analysis‘ latest estimates. Going hand-in-hand with that, personal consumption expenditures (PCE, or people spending that money that they’ve made) increased $42 billion (0.3 percent) for the month.
Consumer spending was spurred by a 1.6 percent increase in purchases of durable goods, such as automobiles. In fact, people are buying cars with considerable gusto now, following a temporary lull. Spending on services was 0.4 percent for the month, but spending on non-durable goods was down 0.5 percent…
