As the relocation of income increases, aggregate consumption decreases. The pattern of separate consumption pattern suggests that the front loading due to tariffs has led support for consumption in December.
Figure 1: Figure 1. Personal consumption spending (black, left log scale), income current transfer (red, right log scale), bn.ch.2017 $ Saar. Source: bea.
Figure 2: Figure 2. Personal consumption, non -reaching and service consumption for durability (blue, left log scale), BN.CH.2017 $ Saar. Source: bea.
Flat service and non -speculative consumption increased (i) permanent income reduction (as defined by Friedman) and (II) uncertainty. However, because the small impact of uncertainty on services and non -defects should be smaller than durability, stress (I) is stressed for service/non -speculation.
