ADDYY - Income/outlays data leads Wells Fargo to see strong spending power coiled for consumer rebound

Chewing over data from the BEA's Personal Income and Outlays report, Wells Fargo is finding an optimistic take for U.S. consumers, as the numbers suggest spending power remains strong. And that's leading it to summarize its takes on historical wallet share trends - including non-discretionary crowding out discretionary spending, "semi-discretionary" technology building wallet share, and experiences over things - and which consumer-facing companies benefit in that post-COVID outlook. Overall income growth remained healthy, it notes, and wage growth stayed positive/recovering. And while that's backward-looking, the firm notes "unemployment benefits represent (less than) 1% of the overall income picture, and consumers continue to sit on an unprecedented level of 'excess savings'  (we estimate almost $1.4T) from an influx of stimulus and many spending verticals shut down or significantly curtailed (e.g., travel & leisure)." That means a lot of discretionary dry powder for 2021, assuming vaccine rollout goes as planned. In restaurants,

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Income/outlays data leads Wells Fargo to see strong spending power coiled for consumer rebound