Hmmm… Is The Income/Spending Downturn A Bump or a Crater?
November 1, 2010 1:54 pm
Earlier in the day, the income and spending report was released. For the most part, on a long-term basis it is looking better, but we have to question the most recent month-over-month down tick. Is it a sign that the deflation spiral is starting to effect income? Or is this just a bump in the road?
We know that the latest GDP report was propped up by the consumer spending component. making up over 70% of the GDP, we need to take notice of what the trend is showing. Already there is a surge in the inventory to sales ratio that tells us that while manufacturing may be forging ahead, sales may be slowing.