US: Personal Income drops in June on lack of stimulus checks – Wells Fargo

Data released on Friday, regarding personal income and spending offers another tantalizing look at the rebound that might have been, explained analysts at Wells Fargo. They point out wages and salaries continued to rise, fueling strong spending. 

Key Quotes: 

“Personal income slipped 1.1% in June, a larger decline than had been expected. The absence of government stimulus checks was the key factor in the decline.”

“As businesses began re-opening in June, wages and salaries rose 2.3% and proprietors’ income shot up 5.5%.”

“The V-shape recovery has already come to real durable goods spending which rose another 8.8% in June pushing the level of outlays here further into record territory.”