Slow Income Growth Extends Into AugustAfter steep wage cuts and subsequent supports from government programs clouded any trend, income growth is showing signs of stabilizing but remains paltry on a longer-run comparison. For the second consecutive month, personal income expanded 0.2%. (July's growth was previously reported as 0.1%.) August's personal income growth was also similar in composition to July's growth. For the second month, wage income expanded and transfer payment growth was stable at a rate below its explosive growth during the government's stimulus-related efforts. As has been the theme for nearly a year, asset-based income fell, but losses have slowed from the steep cuts in the first quarter of 2009. Slow income growth was outmatched by strong spending growth, sending the savings rate lower, to 3%....
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