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Downward revisions to the Oct & Nov income & consumer spending data make the December data look worse than headlines would suggest. Looks like about 64% of the gain in income we saw in Dec due to the enhanced UI benefits and stimulus checks paid out in last days of Dec.
Wage and salary income improved because the massive loss on low wage jobs - approv 450k in liesure and hospitality (mostly restaurants and bars) - was more than offset by continued growth in high wage jobs. Consumer spending dropped across the board as restrictions set in.
Spending on nondurable goods and services suffered more than big ticket goods. From earlier retail sales data we know that spending on groceries and at restaurants and bars were hurt during the month. Some of that reflected lack of big celebrations. Some of it hunger.
Looks like the economy ended the year even weaker that was reported yesterday...
