For a long time, the axiom in markets was “never underestimate the willingness of the US consumer to spend” and today’s vehicle sales and ICSC data underscore that theme.
Earlier, however, personal spending rose 0.2% in Jan versus 0.4% expected. Income grew +0.3% vs +0.5% expected.
The problem is that it’s no longer feasible to finance spending with household debt, employment and wages need to grow, and that’s a long ways off. The point is emphasized here.
On a per capita basis, inflation-adjusted, after-tax incomes are down 0.1% in the past year to $32,675
