Income Down

Just as yesterday’s revision of the second quarter GDP numbers up to 3.3 percent growth was giving some signs of hope for the economy, along comes the news that “personal incomes fell by 0.7 percent in July, the biggest drop in nearly three years and a far larger decline than the 0.1 percent decrease analysts expected.” The economic analysts I talked to yesterday about the GDP numbers all said that the level of growth being indicated there was out of line with all kinds of other economic indicators in a way that gave them little confidence a genuine recovery was under way. This data seems to confirm that.