U.S. Consumer Spending Increases 0.5%

March 2, 2010 by · Leave a Comment
Filed under: Economic News 

This is a sign people are feeling a little bit more confident.  Not only did consumer spending rise, but the savings rate when down at the same time.  Overall we need to increasing savings and investments  in the United States and get our federal and state budgets in order.  Too long we have relied on borrowed money and consumer spending to fund our GDP.  Regardless, this news is a good sign and if we see jobs started to be created then we will be going in the right direction again.

Wall St. Journal – Americans spent more in January than expected but growth of their income was weak, while a gauge of inflationary pressure within the slowly recovering economy rose at a slower rate.Separately, the expansion at U.S. manufacturing firms softened in February but remained very broad based, according to the Institute of Supply Management’s survey released Monday.

Meanwhile, U.S. construction spending fell a third straight time in January, as the unsteady commercial real estate sector continues to overshadow gains made in residential housing.

Personal income increased by 0.1% compared to the prior month, while personal spending climbed by 0.5%, the Commerce Department said Monday. The saving rate slowed to the smallest since 2008.

Economists surveyed by Dow Jones Newswires forecast a 0.4% increase in income and a 0.4% increase in spending for January.

Income has gone up six straight months and spending has increased four straight times.

Source: Wall Street Journal

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