Americans had to dip into savings, which could threaten recovery
WASHINGTON - Personal spending jumped by a larger amount than expected in January but Americans' incomes barely budged as millions of Social Security recipients did not get their usual cost of living boost. The weak income growth could depress spending in the months ahead, acting as a further drag on the fragile economic recovery.
The Commerce Department said Monday that personal spending rose by 0.5 percent in January, slightly better than expected. But incomes edged up only 0.1 percent, significantly lower than the 0.4 percent gain that economists had expected.
The income gain was the weakest showing in four months and raised more concerns about whether consumers will be able to keep spending at a sufficiently strong pace to support an economic rebound. Consumer spending is closely watched because it accounts for 70 percent of total economic activity.
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1 comment:
American's are not going to stop spending until they break the bank. They are too conditioned. It's america's hobby and past-time, Mommy driving the kids to the mall instead of making them go outside and use their imagination.
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