Deflation has returned.
Dollars to doughnuts.CATHERINE RAMPELL
Dollars to doughnuts.
The Commerce Department’s report delivered other bad news, too.
Nominal personal income increased by just 0.1 percent in June — and the increase was due to higher government transfer payments (like unemployment benefits) and capital gains income, not wages and salaries.
In fact, private wage and salary income fell in June.
None of these facts bode well for growth in the third quarter of this year, given that the economy is so dependent on consumer spending. And the austerity measures created by the recent debt ceiling deal look unlikely to make things better.
No comments:
Post a Comment