Consumer spending jumped 0.9% in August, and the economy grew at a 2.2% annual rate in the second quarter.
The headline is that consumer spending is strong. The tradeoff is that it's coming out of savings. Mattie walks through the numbers under the headline: after-tax income grew a third as fast as spending, the personal saving rate fell to 4.1% from 5.2% a year ago, and consumer confidence hit its lowest level in more than 12 years. Mattie argues WHO is doing the spending is actually part of the answer for why the economy can feel so tough for so many, but the headlines all still draw the picture of a strong consumer.
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