Secret Site Map
Saturday, November 01, 2014

Home News Consumer Spending Up Sharply, But Incomes Lag

Consumer Spending Up Sharply, But Incomes Lag

Business

A slight rise in incomes added to concerns that the recovery could weaken unless income growth increases more rapidly.

Associated Press | May 4, 2010

Consumer spending rose in March by the largest amount in five months but the gains were financed out of savings, which fell to the lowest level in 18 months. A slight rise in incomes added to concerns that the recovery could weaken unless income growth increases more rapidly.
 
The Commerce Department said consumer spending rose 0.6 percent in March, matching economists' expectations. Personal incomes edged up just 0.3 percent, raising new worries about lackluster income growth.
 
The March surge in spending was propelled by savings, which drove the personal savings rate down to 2.7 percent of after-tax incomes, the lowest level since September 2008.
 
The fear is that income growth will remain weak, reflecting severely high unemployment, as the job market continues to show the effects of the nation's worst recession since the Great Depression.
 
Unless businesses boost hiring, households will not have the incomes needed to support consumer spending, which accounts for 70 percent of economic activity. That would put the economic recovery in jeopardy.
 
The government reported Friday that the broadest measure of economic activity, the gross domestic product, grew at an annual rate of 3.2 percent in the January-March period. That marked the third quarterly increase since last summer. Most economists believe the recession, which began in December 2007, probably ended in either June or July or last year.
 
The healthy first quarter GDP gain was driven by a big rebound in consumer spending, which powered ahead at an annual rate of 3.6 percent, the best showing in three years. But economists said spending gains of that size cannot be maintained without greater income growth.
 
Read the full story here
 
Source: Associated Press

Top news

UPFDA Recognizes Contributions of Tommy Reeves at Board Meeting

Reeves recently completed a two-year term as UPFDA president where he was instrumental in establishing the future direction of the association.

Cope Named Director of Technical and Regulatory Services at Terminix

Dr. Stan Cope (retired Navy), who has been with Terminix since 2012, has been promoted.

Backed By Bayer Web Portal Relaunched

New Backed By Bayer is a a comprehensive customer-centric platform with new and expanded resources for pest management professionals.

P+L Systems Announces Acquisition

Group De Ceuster of Sint-Katelijne-Waver, Belgium announced the sale of its Environmental Care division to P+L Systems (Holding) UK of Knaresborough, UK, for an undisclosed sum.

Phil 'Doc' Nichols Joins Safer Home Services

Industry veteran Nichols has joined the Clearwater, Fla.-based company as its technical advisor.

x