Secret Site Map
Thursday, October 02, 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

Police Officer Hospitalized After 100+ Yellowjacket Stings

A Georgia police officer was rushed to the hospital after a swarm of yellowjackets attacked him during a chase Wednesday, WSBTV reported.

Terminix Acquires Assets of Quebec-Based Groupe Cameron

The entrance into the Quebec province expands Terminix's presence in Canada.

Peanut Executive Guilty in Deadly Salmonella Outbreak

A jury in Georgia convicted a former peanut company owner Friday of conspiracy, fraud and other federal charges in a groundbreaking case stemming from a deadly salmonella outbreak almost six years ago.

BedBug Central Introduces SenSci Volcano and SenSci Activ

SenSci Volcano, a bed bug monitor, and SenSci Activ, a bed bug lure are products that can be used in combination for detection.

Batzner Pest Management to ‘Go Pink’ for Breast Cancer Awareness Month

As part of a Breast Cancer Awareness Month initiative, Batzner service professionals will be wearing pink shoe covers and pink gloves during October service visits.

x