Consumers still earned more in November than in the Good Times, but a lot less than back when free Pandemic-money was massively hailing down.
By Wolf Richter | 23 December 2020
WOLF STREET — Consumers are starting to run out of artificial steam. The free Pandemic money has been dropping for months and in November nearly faded out. For the first time since April, consumers spent less all around; they spent less on services, nondurable goods, and even on durable goods, which had been spiking in astounding manner.
Personal income from all sources in November fell 1.1% from October, to the lowest since March, to a seasonally adjusted annual rate of $19.49 trillion, according to data from the Bureau of Economic Analysis today. It was down 7.6% from its fabulous stimulus-and-extra-unemployment-money-induced spike in April. But it’s still up 3.8% from the Good Times a year ago, now, during the Pandemic when over 20 million people are still claiming state or federal unemployment benefits: