What is it?
The Personal Income and Outlays report is issued monthly by the Commerce Department. The report measures dollar value changes in personal incomes, personal spending, and personal savings. Income is defined as being from all sources, mainly wages and salaries. Outlays are defined as consumer purchases of durable goods, non-durable goods, and services. Savings is what is left over.
The report is watched, because savings is thought to lead to investment, which is positive for the economy. Spending is thought to drive earnings - also good economic news, particularly in the short term, as consumer spending makes up over two-thirds of the economy. Big news in the report can occasionally move markets, but it is considered somewhat dated, as much of the data can be inferred from reports already released.
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