Remember how the Obama Administration declared last summer to be Recovery Summer? Good times, good times. First monthly income decline in two years.

Personal income decreased $7.3 billion, or 0.1 percent, and disposable personal income (DPI) decreased $5.0 billion, or less than 0.1 percent, in August, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $22.7 billion, or 0.2 percent. In July, personal income increased $17.1 billion, or 0.1 percent, DPI increased $14.4 billion, or 0.1 percent, and PCE increased $76.6 billion, or 0.7 percent, based on revised estimate.

This is actually the second month in a row in which disposable personal income declined, and for obvious reasons. Consumers are now being forced to tap into savings to continue spending money. Reuters reports that economists actually expected personal income to rise — not fall.

 Incomes fell for the first time in nearly two years in August and consumers dug into their savings to keep spending, according to a government report that showed the impact of the weak jobs market.

The Commerce Department said on Friday spending rose 0.2 percent, in line with economists’ expectations, after increasing 0.7 percent in July. When adjusted for inflation, however, spending was unchanged after rising 0.4 percent in July. …

Income slipped 0.1 percent, the first decline since October 2009, with private wages and salaries dropping $12.2 billion after increasing $23.8 billion in July.

Economists had expected income to edge up 0.1 percent.

“What you’re basically getting is a scene where consumers are losing momentum, they’re losing momentum on income and as a result of that they’re slowing down on spending,” said Steven Ricchiuto, U.S. chief economist at Mizuho Securities in New York.

That despite massive stimulus spending, purported “green job creation”, and every Keynesian policy Washington could throw at (and on) the economy.

Trillions of dollars later and all we have to show for it is 9.1% unemployment, falling personal income, falling housing prices, one in six Americans on food stamps, and record levels of welfare spending. Good job, President Downgrade.