More Good Economic News

This morning, we learned that personal income rose 0.4% last month while spending rose by 0.3%. This is one of our first looks at data for Q3.

Economists say that underlying strength, also highlighted by a rebound in business spending, buoyant housing and labor markets, as well as bullish consumer confidence, gives the economy muscle to weather the fallout from the markets rout.

The fairly upbeat consumer spending report also suggested the economy maintained some of its vigor from the second quarter, when it expanded at a 3.7 percent annual rate.

Last month, spending on long-lasting goods such as automobiles increased 1.1 percent, reversing June’s 1.1 percent drop. Auto purchases accounted for about half of the increase. Outlays on services like utilities rose 0.2 percent.

It seems like the market has calmed down today. We started lower, then went briefly green, then lower again. I won’t believe any move has legs until the VIX closes below 20. It’s currently at 26.

Posted by on August 28th, 2015 at 12:25 pm

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