The Most Peculiar Chart In America

Corporate profit margins have been on the tear, largely due to the American worker getting squeezed.

Yet, despite high unemployment and stagnant wages, consumer spending has been resilient.

In fact, this is a trend that’s been going on for a while.

In a new research note about corporate profit margins, Morgan Stanley’s Gerard Minack discusses this.

“What has been peculiar to the US is that consumer spending remained strong in the face of declining wage income share,” he writes.

Below is the chart he provided.  It’s weird.

wages spending

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at