More Americans Are Racking Up Debt To Maintain Lifestyles, Amid Soaring Inflation Tax And Dwindling Incomes

Personal Income Decreased 13.1% in April, Spending increased 2.4%

The BEA released the Personal Income and Outlays report for April:

Personal income decreased $3.21 trillion (13.1 percent) in April according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) decreased $3.22 trillion (14.6 percent) and personal consumption expenditures (PCE) increased $80.3 billion (0.5 percent).

Real DPI decreased 15.1 percent in April and Real PCE decreased 0.1 percent; goods decreased 1.3 percent and services increased 0.6 percent. The PCE price index increased 0.6 percent. Excluding food and energy, the PCE price index increased 0.7 percent.
emphasis added

The April PCE price index increased 3.6 percent year-over-year and the April PCE price index, excluding food and energy, increased 3.1 percent year-over-year.

The following graph shows real Personal Consumption Expenditures (PCE) through April 2021 (2012 dollars). Note that the y-axis doesn’t start at zero to better show the change.

The dashed red lines are the quarterly levels for real PCE.

Personal income was above expectations,  and the increase in PCE was at expectations.

Source: by Bill McBride  | Calculated Risk

1 thought on “More Americans Are Racking Up Debt To Maintain Lifestyles, Amid Soaring Inflation Tax And Dwindling Incomes

  1. Pingback: More Americans Are Racking Up Debt To Maintain Lifestyles, Amid Soaring Inflation Tax And Dwindling Incomes — Easy Money | Vermont Folk Troth

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

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