Nearly 800,000 Americans filed for unemployment benefits last week (regular state programs, not seasonally adjusted). Note that that figure uses a placeholder for California because of the two week pause on filings in that state.
dol.gov/ui/data.pdf
Meanwhile, personal income fell in August as extra unemployment benefits expired. Consumer spending rose, but more slowly than in prior months.
How can spending be going up while income is going down? Americans are saving less -- although savings are still well above pre-pandemic levels.
The total amount paid out in unemployment benefits fell by more than half in August as the $600 federal supplement ended. The loss overcame a modest rise in wage and salary income.
Spending on services is rising as businesses reopen, but remains extremely depressed. Spending on goods has stalled out but at an elevated level compared to before the pandemic.
Meanwhile the gap between spending on durable vs nondurable goods widened further in August. Durables spending now well above pre-pandemic levels and rising.
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