The Bureau of Economic Anaylsis reported today that consumer spending went up by 0.5% in January.
Hey, that’s good right? We know that a large part of GDP — gross domestic product, basically the worth of a country– is comprised of consumer expenditure.
But before we get all excited, the BEA also reports that personal income, on the other hand, went down by 0.1%.
Even worse? Disposable personal income — the income we have left for necessities — went down by 0.4 %.
Okay, so that’s even worse than I thought. Uh-oh. Uh-oh indeed.