Siebert Financial flags consumer strain as spending outpaces income growth
SIEB•Siebert Financial warned that rising retail sales may mask weakening consumer purchasing power, as household spending outpaced income growth. September retail sales rose 0.8%, while August personal spending increased 0.9% and income rose 0.2%.
1. Spending and income
September retail sales rose 0.8%; excluding gas stations, sales grew 0.2%, a result described as statistically indistinguishable from zero. August personal spending increased 0.9%, compared with income growth of 0.2%.
2. Saving rate declines
The personal saving rate fell to 4.1% from 4.6% in July. Siebert said the figures suggested households were increasingly relying on reserves to sustain spending, and advised investors to distinguish price-driven revenue growth from sales-volume gains while assessing customer demographics and exposure to rising freight costs.
