Thursday, August 6, 2009

US consumption, personal income and wages

US consumer spending rose (0.4%) for the second consecutive month in June (0.1% in May), driven by rising food and fuel costs.

Personal income in June fell 1.3% from May (May was the month of the stimulus payments)

Wages and salaries fell by 0.4% in June from May for the eighth straight month.

What will be the consumption impact of the "cash for clunkers" scheme in July and August that allow people to trade in old cars to buy newer vehicles at a discount?

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