US: Wages and salaries are re-gaining lost ground – Wells Fargo

Personal income and personal spending rose above expectations during September. Analysts at Wells Fargo point out that while the income picture is still muddied by changes in jobless benefits programs in September, wages and salaries are re-gaining lost ground.

Key Quotes: 

“The drop in jobless benefits was partially offset by a $248 billion increase in “other,” a supplemental note explained that as Trump’s executive order which offered a $300 weekly top-up.”

“After increases across most categories in September, real goods spending is now 4.9% above its pre-pandemic level. Although services still has 7.3% to go, overall real PCE is down just 2.6% from February.”

“Goods spending, untrammeled by the virus, is soaring.”