The Bureau of Economic Analysis released its personal income and outlays report for August this morning, and the news isn’t great.
Real disposable income decreased 0.3 percent in August, in contrast to an increase of 0.1 percent in July. Real PCE increased 0.1 percent, compared with an increase of 0.4 percent.
This is the first decline in real DPI since November of 2011, and the largest monthly drop since October of 2009.
Real PCE are still sputtering along, certainly nothing to be overly optimistic about though.