Consumers Resume Saving in August - Update
Following three straight months of significantly outpacing increases in consumer income, and a July 2010 decline, consumer saving rose again in August 2010,
according to the monthly Personal Income and Outlays report from the
Bureau of Economic Analysis (BEA). Spending and income both increased for the second straight month.
Consumer Saving Rises
In August 2010, consumers saved $661.9 billion, up 1.8% from a revised $650 billion the prior month. Personal saving as a percentage of disposable personal income was 5.8% in August, compared with 5.7% in July.
Personal saving went through numerous radical monthly shifts in 2009 and then declined for the first three months of 2010 before reversing course with a dramatic 16.2% increase in April 2010.
Income Continues Minimal Growth
In August 2010, US consumers’ personal income rose increased $59.3 billion, or 0.5%, and disposable personal income(DPI), which is personal income less current personal taxes, increased $52 billion, also 0.5%.
These results continue a long-term pattern of fractional change in consumer personal income and DPI.
Spending Rebounds from June Loss
U.S. consumers’ personal consumption expenditures (PCE), which essentially reflect consumer spending, increased $41.3 billion, or 0.4 percent. PCE increased also increased 0.4% in July after staying flat in June and April and growing 0.2% in May.
Retail Sales Improve in August
According to the August 2010 Advance Monthly Retail Trade Survey from the U.S. Census Bureau, U.S. retail and food service sales
rose 0.4% on a monthly basis and 3.6% on a yearly basis.
In August 2010, U.S. retail and food service sales totaled $363.7 billion, compared to $362.2 billion in July 2010 and $350.9 billion in August 2009. On a monthly basis, this is the second straight sales increase, which followed two straight sales decreases, which in turn followed a four-month streak of gradually slowing monthly U.S. retail and food service sales increases.
