Free Trial

Real Spending Fizzles Out As Savings Decline Stalls

US DATA
  • Real spending edged 0.1% M/M higher in August as expected but extensive revisions mean growth has been tepid through Q3 after the 2% annualized in Q2.
  • This has coincided with a savings ratio now seen to have increased to 3.5% from a June low of 3.0% (revised down from 5% prior), on the plus side displaying little sign of precautionary saving having ended last year at 7.5%.
  • However, it also means that to generate real consumption growth, the savings rate will need to be run below the 2005-07 average of 3.3% if real disposable income growth maintains its most recent trend of 0%.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.