Growth was revised up. Why does my wallet feel no different?
Story summary
The economy's report card improved, but your bank balance seems unmoved. Did it miss the news? The key is that GDP growth and household income are looking at different periods.
Releases linked to this story
A linked official release date has not yet been confirmed.
The questions below explain what to check in the next available evidence.
Questions for the next release 2
Will real income and consumption move together next month?
When to check
This question requires several follow-up sources. A final review date has not been set.- Comparison evidence
- After-tax real income and real consumption by category from the same release vintage
- What would change the assessment
- Lower the persistence assessment if income and quantities do not follow consumption.
Follow-up evidence not reviewed · Outcome not assessed
Do growth and spending feed through to inventories, orders and company cash?
When to check
This question requires several follow-up sources. A final review date has not been set.- Comparison evidence
- Construction, equipment orders, inventory turnover, production and company disclosures for matching periods
- What would change the assessment
- Narrow the transmission channel if inventory and equipment activity do not connect to actual cash.
Follow-up evidence not reviewed · Outcome not assessed