Macro: Personal Income And Outlays
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The growth rate of income and consumption are at healthy levels. But there are some aspects of this growth that I’d like to point out. Though we have healthy rates of growth, the concern is that both incomes and consumption are slowing.
I know we had excess savings from government transfers to the private sector. But we also had excess spending for the past two and a half years. So the second concern is the savings rate, which is in the lowest decile of history.
And finally, private sector income growth is underperforming government income growth. When the private sector is weaker than the government sector, history often proves that we should be wary.
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