Daily Databite: People still have extra cash
Excess savings may not be gone
Good morning again!
The Databite will be quick, and a bit redundant, so I apologize for that, but I’m flying back from LV today and should have more time to focus.
People still have cash
Contra yesterday, according to BofA people still have more cash than before:
People have more cash across all income cohorts. The amount is decreasing, but pretty slowly.
Another thing that jumps out is the incredible bump to lower income folks, which was both a function of stimulus, but also the secular “worker shortage” (i.e. aging) pushing up the premium to the service and trades.
You can see the boost to lower income folks in the growth of wages and salaries, where lower income groups have gained the most (and also increased their credit card spending the most):
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