This morning brought information on personal income and personal spending. Once again, it wasn’t good.
Personal income was expected to come in at .2%; we got .1%. Personal spending was a disaster. It was -.2% from a revised .1%. More acknowledgement that the consumer has gone into hiding.
Gold passed $1640 an ounce. It continues to climb. European depositors are contributing to that as they take money out of European Union banks and buy gold and silver.
Goldman Sachs said the weak personal income data brings “additional risks to our 2.5% third quarter GDP forecast. Shah Gilani of Money Mornings expects a big market sell off coming. Why? “We haven’t even touched anywhere close to where we could go given the numbers that have come out of the Commerce Department. It’s very discouraging.”
We’ll get an even sharper picture Friday when the July jobs numbers are released.