There was a 0.1 percent dip in personal income in August vs. July, the Bureau of Economic Analysis just reported. The Associated Press says that’s the “poorest showing since a similar 0.1 percent drop in October 2009.”
In addition, “disposable personal income” actually fell 0.3 percent after inflation.
Meanwhile, consumer spending edged up 0.2 percent — but was unchanged when inflation is factored in. Since consumers purchase about 70 percent of all goods and services, weakness in their demand ripples through the economy.