Personal Income and Consumer Spending Rise in July 2026-More Spending on Services and Less on Goods

Personal income and consumer spending both increased, which are positive signs following the decline in the prior month. However, the increases were relatively modest. Disposable income also rose slightly, while the personal savings rate remained relatively low. This suggests that although people are earning and spending a little more, they may not be setting aside much of that additional income. n

Some of the services where they are spending their money may be expenses out of the consumers control while goods has some flexibility if you can't afford it right now. Maybe, maybe not. 

Personal Income and Consumer Spending Continue to Rise in July 2026

1. Personal income increased $115.1 billion, or 0.4%, in July, while disposable personal income rose $125.9 billion, or 0.5%.

   

   Source 

2. Consumer spending increased $36.3 billion, or 0.2%, indicating that households continued to contribute to economic activity despite relatively modest overall growth.
3. The increase in spending was concentrated in services, which rose $86.2 billion, while spending on goods declined $49.9 billion. Real consumer spending increased less than 0.1%.
4. Inflation remained relatively moderate in July, with the PCE price index increasing 0.2%. Core PCE inflation, excluding food and energy, also increased 0.2%.
5. Personal saving totaled $712 billion, but the personal saving rate was only 3.0% of disposable income. Overall, the report suggests that income and consumer demand remain positive, although the limited growth in real consumption and low saving rate could indicate some pressure on household finances.

U.S. Bureau of Economic Analysis. (2026, August 26). Personal income and outlays, July 2026. https://www.bea.gov/news/2026/personal-income-and-outlays-july-2026

GDP in 2nd Quarter Slows as Corporate Profits and Consumer Demand Remain Strong

The latest GDP report presents an interesting picture of the U.S. economy. Economic growth slowed to about 1.5%, roughly in line with expectations but lower than the prior period, yet consumer demand remains strong and corporate profits continue to rise.

The combination raises an important question: Are businesses becoming more efficient through technology and productivity improvements? If so, that efficiency could strengthen companies while creating challenges for workers who may struggle to adapt to changing job requirements (i.e. flexible training and education). 

Over the long term, there is also a concern that corporate profits and productivity could rise while wages and the economic value of the average worker fail to keep pace. These will be the gist of some questions as we see how a recent mass influx of technology will make their way into adaptation.We do continue to discuss human capital on this blog because it will likely (proabable) become increasingly economically important for sustained growth.

It is also ok to have a different economic opinion as I might change mine tomorrow. In general I think human capital will become more important. Maybe, maybe not.

U.S. GDP Growth Slows to 1.5% in Second Quarter of 2026

• Real GDP increased at an annual rate of 1.5% in the second quarter of 2026, unchanged from the advance estimate but down from 2.1% growth in the first quarter.
• Consumer spending, exports, and investment supported economic growth, while declining government spending partially offset those gains.
• Real final sales to private domestic purchasers increased 4.2%, suggesting relatively strong underlying private-sector demand despite slower overall GDP growth.
• Inflation remained elevated, with the PCE price index rising 5.3% and core PCE, excluding food and energy, increasing 3.6%.
• Corporate profits from current production increased by $400.9 billion in the second quarter, a substantial acceleration from the $74.4 billion increase in the first quarter.

U.S. Bureau of Economic Analysis. (2026, August 26). GDP (second estimate) and corporate profits, 2nd quarter 2026. https://www.bea.gov/news/2026/gdp-second-estimate-and-corporate-profits-2nd-quarter-2026

Enhancing Stronger Systems: Corruption, Judicial Perceptions, and Public Trust

In business economics, the justice system plays an important role in maintaining a healthy society, protecting rights, and upholding the values that support economic activity. Our hypothetical Allegory of the Clan illustrates how hate, corruption, and victim-blaming can work together to undermine social contracts, weaken trust, and create human capital problems.

A strong, functioning judicial system is important not only to society but also to everyday business. Contracts and business relationships depend on the expectation that all parties will be treated fairly and that there will be consequences when agreements or rights are violated. When people trust institutions to do the right thing, there is an economic advantage because trust encourages participation, investment, cooperation, and long-term relationships.

Conversely, when corruption or misconduct goes uncorrected, it can undermine confidence in the entire system. Ideally, there should be effective mechanisms for holding corrupt individuals accountable and removing them from positions of authority. In practice, however, this can be difficult when institutional protections and layers of immunity shield poor or intentionally harmful behavior. That becomes especially troubling when problems are well known and have created long-term patterns. 

These challenges demonstrate why accountability and institutional integrity matter to both society and the economy. When people believe the system is fair and capable of correcting wrongdoing, they are more likely to participate in it and trust its institutions. When that confidence disappears, the resulting costs can extend well beyond the immediate victims and create broader social and economic problems.

Corruption, Judicial Legitimacy, and Public Trust

• The study examines how people evaluate courts when corruption cases involving powerful business leaders raise questions about both judicial outcomes and procedural fairness.
• Using a survey experiment with 1,042 respondents in Brazil, the researcher manipulated both judicial misconduct and whether a corruption conviction was upheld or overturned.
• The findings indicate that outcomes mattered more than procedural irregularities: respondents were substantially less supportive of courts when corruption convictions against business leaders were overturned.
• Procedural fairness still influenced perceptions of individual judges, particularly when judges appeared self-interested, biased, or improperly involved with prosecutors.
• Overall, the research suggests that public legitimacy may depend heavily on whether courts are perceived as holding powerful economic actors accountable, demonstrating the tension between due process and substantive justice.

Vilaça, L. (2026). Corruption and the legitimacy of courts: Experimental evidence from Brazil. Social Forces. https://doi.org/10.1093/sf/soag029

Playing Polo and the Opportunities for Equestrian Equipment and Rural Land Productivity

I recently went horseback riding and played a little polo, something I do from time to time in California, although I have also ridden and played in Michigan. Polo combines horsemanship, athleticism, competition, and, of course, a fairly substantial financial commitment. It also got me thinking about potential opportunities in Delta County.

(Illustrative Only)

Owning a horse is a major commitment. When I owned one, I quickly learned that the horse becomes part of your schedule—you feed, groom, train, and care for it regularly. There is also an interesting business model in purchasing horses, training and developing them, and eventually reselling them. Many serious equestrians do this as part of the industry.

Polo is also a great way to improve riding skills. Without the horn or handle found on a Western saddle, you need a good seat while leaning over, swinging a mallet, and managing a horse that is stopping, turning, and accelerating. It is a workout—and occasionally a reminder that gravity always wins. (If you need fitness training I'm licensed so send me a message to the right).

Polo has a reputation as a “rich person’s sport,” and it certainly can be expensive. However, playing occasionally is much more affordable when you do not own the horse. A lesson and a few chukkers can cost around $120, while the club provides the horse and equipment. For occasional riders, that can make much more sense than taking on the daily costs of ownership.

This brings me back to Delta County. With its rural land, there may be opportunities for horse farms, boarding and training facilities, specialized agriculture, or other equestrian-related businesses. I am not suggesting Delta County become a polo center—Western riding may have greater market alignment—but the broader horse industry includes breeding, training, boarding, veterinary services, feed, equipment, tourism, and recreation.

Economic development does not always require one large industry. Developing several smaller industries that put underutilized land (organic farming, horses, recreation, etc.) to productive use could collectively increase local wealth by maybe 10 or 15 percent. Horses, small farms, tourism, and related businesses could complement one another and provide another opportunity worth exploring..

An interesting piece on market size....

Horse Riding Equipment Market Insights 2026–2031

• The global horse riding equipment market is estimated at approximately $1.0–$4.0 billion in 2026, with projected annual growth of 2.5%–8.1% through 2031.
• Market growth is being driven by increased participation in equestrian sports, recreational riding, equestrian tourism, and the professionalization of the industry.
• Amateur riders represent the largest consumer segment, while premium equipment is experiencing stronger growth as consumers increasingly seek luxury brands, advanced materials, and performance-oriented products.
• Asia-Pacific is projected to be the fastest-growing region, while North America remains a mature but expanding market supported by Western riding, English-style competition, and technology-integrated equipment.
• Technology and sustainability are reshaping the industry through smart helmets, air-bag vests, horse-monitoring sensors, 3D scanning, synthetic materials, vegan leather, and recycled textiles; however, high participation costs and animal-welfare concerns remain important challenges.

HDIN Research. (2026, January 30). Horse riding equipment market insights 2026, analysis and forecast to 2031. https://www.hdinresearch.com/reports/160418

Continued Economic Caution: US Consumber Confidence (August, 2026)

 Like many of the economic metrics out there, consumers are also not entirely sure what to make of the current market. That presents a challenge because a significant portion of the economy is driven by consumer sentiment, which influences engagement, investment, purchases, travel, and what I would call transactions that ultimately generate economic activity. Watching these statistics as they are released gives the impression that the market is doing so-so. Some areas are improving and looking positive, while other areas remain concerning, particularly those related to the labor market/human capital and consumer interests. Ultimately, we will have to wait and see how these trends develop.

U.S. Consumer Confidence Shows Continued Economic Caution

• The Conference Board Consumer Confidence Index declined 0.8 points in August 2026 to 89.4, indicating that overall consumer sentiment remains relatively weak.
• Consumers’ assessment of current economic conditions improved significantly, with the Present Situation Index rising 6.8 points to 121.2.
• Despite improved views of current conditions, expectations for the future deteriorated. The Expectations Index fell 5.8 points to 68.2, suggesting increased concern about future income, employment, and business conditions.
• The Consumer Confidence Survey tracks consumer attitudes, purchasing intentions, vacation plans, and expectations regarding inflation, interest rates, and stock prices, providing an important indicator of potential consumer spending.
• The August results illustrate an important economic distinction: consumers can feel relatively positive about current conditions while becoming more cautious about the future, which could influence spending and broader economic growth.

The Conference Board. (2026, August 25). US consumer confidence edged down slightly in August. The Conference Board. https://www.conference-board.org/topics/consumer-confidence/

Escanaba City Council Regular Meeting Thursday, August 20, 2026: Water to Homecomings

Watching this Escanaba City Council meeting helps me think about some of the infrastructure improvements taking place in the area, particularly the highway projects. These improvements should increase the speed, efficiency, and ease of transportation and movement throughout the area. It is also interesting to see investments in new equipment, water and wastewater plant improvements, playgrounds, city construction, and community events such as homecoming parades. Overall, Escanaba is a small town, but it is clearly a town on the move. People have lives, businesses, families, and activities, and there is a lot happening in the community.

August 20, 2026 Agenda

Summary of meeting minutes,

Meeting Opening & Administrative Business

• Call to Order & Roll Call: Meeting called to order with five council members present.

• Pledge of Allegiance: Recited by the council and attendees.

• Approval of Minutes: Minutes from the August 6, 2026 regular meeting were approved as written.

• Agenda Adjustments: Approved moving general public comments and committee reports to right after Item #8 under New Business, and adding Item #9 (a city construction update regarding street projects).

• Conflicts of Interest & Public Comment: No conflicts declared; no public comments made.

New Business Items

• Item 1: Water Plant SCADA Improvements

  • Details: Approved retaining FDS Engineering and Electrical Services (Iron Mountain, MI) for SCADA system improvements in an amount not to exceed $3,900.

  • Discussion: Water administration noted these were overlooked details from a previous project; funds are available in professional services.

  • Vote: Approved unanimously (5-0).

• Item 2: Wastewater Treatment Plant New Sewer Truck

  • Details: Proposal to purchase a Sewer Equipment Company of America combination sewer cleaner for $373,591.44 (after a $225,000 trade-in for the 2020 model).

  • Discussion: Water administration strongly advocated for replacement to prevent mechanical failures and escalating maintenance costs. Council expressed concern over the budget oversight, as only $150,000 had been budgeted for repairs rather than a full replacement.

  • Vote: Motion to deny passed 4-1.

• Item 3: Property Abatement (208 South 4th Street)

  • Details: Authorized the City Attorney to file circuit court action against property owners to abate property maintenance code violations, blight, and fill below-grade spaces following a February 2023 fire.

  • Discussion: Code Enforcement explained the owners refused to sign a formal cleanup agreement. Despite recent partial sand filling, formal legal proceedings are needed to ensure winter compliance.

  • Vote: Approved unanimously (5-0).

• Item 4: Purchase of Highway Street Light Poles

  • Details: Approved purchasing 80 aluminum breakaway street light poles for $212,320 to replace rusted steel poles along US-2 ahead of an upcoming state highway project.

  • Discussion: Existing LED light fixtures will be reused. The bulk order leaves 6–10 spare poles in inventory for future vehicle damage repairs.

  • Vote: Approved unanimously (5-0).

• Item 5: Playground Equipment & Installation

  • Details: Approved $97,588.62 in city funding to purchase two new playground structures and install three total (including one previously purchased via community build) scheduled for October.

  • Discussion: Although $52,100 was budgeted, excess wood chips and staffing shortages offset the cost. Purchasing both now took advantage of manufacturer promotional discounts.

  • Vote: Approved unanimously (5-0).

• Item 6: Special Event – Escanaba High School Homecoming Parade

  • Details: Approved closure of Ludington Street (4th to 14th Street) on Friday, October 9, 2026 (5:00 PM – 6:00 PM), subject to standard insurance and cleanup conditions. An alternate route is planned if street construction interferes.

  • Vote: Approved unanimously (5-0).

• Item 7: Special Event – William Bonifas Arts Center Block Party

  • Details: Approved partial closure of 1st Avenue South and South 7th Street on Friday, September 4, 2026 (5:00 PM – 10:00 PM) for the "Raise the Roof" block party.

  • Vote: Approved unanimously (5-0).

• Item 8: Interim City Manager Agreement Extension

  • Details: Approved extending the Interim City Manager agreement.

  • Discussion: Council acknowledged the extreme workload involved in balancing city management alongside upcoming audit preparations.

  • Vote: Approved unanimously (5-0).

• Item 9: City Construction & Infrastructure Update

  • FiveStar Project: Restorations are underway on the south side; lead service line work has halted due to fallen timelines. The city fell 400–600 lead service lines short of seasonal expectations due to contractor staffing delays. Substandard asphalt patches were rejected and ordered redone.

  • ARPA Project (Oberstar): Water main and lead service line replacements went smoothly and fully utilized allocated funding.

Supporting San Diego Police Foundation

 From time to time, philanthropy provides an opportunity to support organizations doing important work in the community. Recently, the San Diego Police Foundation visited one of the organizations I belong to, sharing information about its mission and the work it does to support local law enforcement.

The conversation also highlighted an important need: recruiting the next generation of police officers. Communities benefit from attracting young recruits from diverse backgrounds and high ethical standards who want to serve, contribute, and make a difference.

Police officers have an important role in keeping communities safe, and the vast majority are committed to doing the right thing and helping others. The good we want to keep. It is  important to recognize the many officers who dedicate their careers to protecting and supporting the communities they serve.

Supporting organizations such as the San Diego Police Foundation is one small way community members can help strengthen that mission.

San Diego Police Foudation