BLS - GDP 3rd Quarter Estimates 11/18/09 - Real disposable income decreased 3.4% in the 3rd quarter (-$15.5 billion). Personal savings also decreased from 4.9% in the 2nd quarter to 3.3% in the 3rd. Removing the cash-for-clunker sales, spending was rather weak in many areas such as equipment and software. Federal spending slowed as cuts in defense spending increase. State and local government spending also decreased. For retirees, dividend income decreased $26.3 billion after a 2nd quarter decrease of $69.8 billion. Despite the good and bad news, personal income tax revenue increased approximately $5 billion. Since January 2009 the FWP has been talking about a long and slow economic recovery and potential of a "double-dip" due to excessive and ineffective government spending.
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