Biggest Drop In Govt Wages On Record Spark Spending Slump In November Americans' personal income and spending was expected to drop in November as benefits dried up and lockdowns were reinstated across the nation, and it did, by considerably more than expected. Incomes fell 1.1% MoM (considerably worse than the 0.3% drop expected) and Spending dropped 0.4% (worse than the -0.3% exp) for the first monthly drop since April... Source: Bloomberg The big drop in personal income was mostly due to a $164BN annualized drop in proprietors' income with inventory valuation and capital consumption adjustments. On a YoY basis, both income and spending growth slowed with spending down 1.3% YoY and incomes only up 3.8%... Source: Bloomberg Adjusted for inflation, real spending dropped 0.4% MoM - the first monthly drop since April. However, while Private wages rose 2.8% Y/Y, (a slight decline from 3.0% month ago), Govt wages continued to drop, down -2.3% Y/Y, vs -2.1% last month - that is the biggest drop on record for govt wages... Source: Bloomberg Personal Savings rate slumped by 0.7% to 12.9% from 13.6% as Americans continue to burn through savings... Will the new stimulus checks "fix" this? Tyler Durden Wed, 12/23/2020 - 08:38