Chapter 8. Personal Income: Don’t Spend It All in One Place

In This Chapter

  • How personal income fuels consumer spending

  • Understanding consumer spending components

  • The personal consumption expenditure price index is closely tracked by the Federal Reserve

  • Why the personal income report is more up-to-date than the GDP report

The personal income report provides the broadest picture regarding the health of the household sector. After all, when it comes to spending, it’s how many bucks get deposited into your bank account—your income—that plays the key role in how much you purchase. You might be wondering if the personal income report tells us so much about consumers, why doesn’t it get as much market attention as the employment situation report? Well, they ...

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