A few data points from today...
The Good
This morning's Chicago PMI showed that delivery times have slowed. How is this possibly a good thing? Well, if corporations are slowing delivers due to a lack of capacity, they are more likely to invest in more capacity, add (or at least stop laying off) employees, or in a perfect world... both.
The Bad: Sustainability of Consumption
Also released this morning was personal income and consumption for March. The chart below shows personal income, personal consumption, and personal consumption less transfer payments (defined as money given by the government to its citizens). Excluding these payments, which includes unemployment benefits, the savings rate is... wait for it... negative (good over the short run perhaps, but without hiring this hardly seems sustainable).
Source: ISM / BEA
This morning's Chicago PMI showed that delivery times have slowed. How is this possibly a good thing? Well, if corporations are slowing delivers due to a lack of capacity, they are more likely to invest in more capacity, add (or at least stop laying off) employees, or in a perfect world... both.
The Bad: Sustainability of Consumption
Also released this morning was personal income and consumption for March. The chart below shows personal income, personal consumption, and personal consumption less transfer payments (defined as money given by the government to its citizens). Excluding these payments, which includes unemployment benefits, the savings rate is... wait for it... negative (good over the short run perhaps, but without hiring this hardly seems sustainable).
Source: ISM / BEA
Jake..
ReplyDeletedo you have some data about US small/medium industries & companies ?!
gdr- not sure what some data means, but i have not been explicitly looking into small / medium industries and companies
ReplyDeleteGood one, Jake.
ReplyDeleteYou're getting very close to thinking like in MMT terms, if you are not already.