Real weekly wages plunges in January, down -1.4% yr/yr adding more stress to deeply indebted households
The BLS reported today that average seasonally adjusted weekly wages fell another -0.5% behind consumer price increases in January with wages now able to buy -1.4% less than they did one year ago. Weekly wages fell in four of the past five months since last August. Average real weekly wages are now again lower than they were in January 2002…and in January 1981 when the irresponsible debt and deregulation ideology took power.
Oh, and the Census report last week that nominal consumer spending rose 0.3% in January that the debt industry spun to suggest economic growth. Today the BLS reports that consumer prices rose 0.4% in January; after adjusting for inflation, consumer spending FELL by about -0.1% in January but their real wages fell even further.
Today’s reports are more evidence that the economy is very likely already in recession and consumer finances are certainly worsening rapidly.