The BEA's Income and Outlays Report shows consumers have been tapping savings all year to support purchases.
Consumers spent 2.6% more than a year ago. Incomes are up only 1.6% from a year ago. That pattern has repeated every month in the above table.
Real Disposable Income
The numbers reflect averages. Those on the low end of the economic scale spend every penny they make, and then some.
In a related article, also consider Hurricane Impacts Abate: Real Income +0.3%, PCE +0.1%, Inflation +0.1%.
Mike "Mish" Shedlock