Spending Outstrips Income for 8th Time in 9 Months

Source: Economics Group of Wells Fargo Bank, N.A.Summary For the eighth time in nine months, consumers spent more money than they earned after adjusting for inflation in September. This spending is driven by an unsustainable draw-down of savings and over-reliance on credit, and we suspect it will not end well unless real disposable income picks up. Unfazed…Maybe it Would Be Healthier if We Were Fazed In September, consumers continued doing what they have been doing for much of 2022: spending much more than they are making. After adjusting for inflation, income was roughly flat for the month, while real spending increased 0.3% even as the prior month’s real spending number was revised sharply higher from +0.1% to +0.3%. READ FULL ARTICLE>>