- the source for market opinions


June 30, 2018 | Real Spending Flat in May, Revisions Lower April Income and Spending

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Economists missed the mark badly. They expected a rise in real spending of 0.2%. Revisions make the miss even worse.

The BEA ‘s Personal Income and Outlays report for May shows Real DPI increased 0.2 percent in May and Real PCE decreased less than 0.1 percent.

The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.2 percent.



Here are the Personal Income and Outlays expectations by Econoday for May.

Economists hit the mark for income, but missed badly on spending. Real spending was flat (Consumer Spending Minus Price Index).

Revisions make the miss even worse.

With yesterday’s GDP report, I noted that it was nearly July but we were looking at first-quarter GDP numbers. I also noted that some of the second quarter reports were only 1/3 in. This was the major one.

This report will be a major blow to 4% and some 5% GDP estimates for the second quarter.

Mike “Mish” Shedlock

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

June 30th, 2018

Posted In: Mish Talk

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.