USA – The Commerce Department says Americans increased spending by 8%. Great news right?
Considering personal income only went up by 4%; meaning folks are spending at twice the rate their income is growing. Think about this, after inflation and taxes that 4% increase, doesn’t really amount to much at all.
So does this mean people are hoping for an improvement in the economy?
Well it could be that the price of gas going down and more jobs becoming available has improved the spending mood; but beware big spenders, the economy is still slow.
Many of us haven’t dug ourselves out of the financial mess we’re in; let’s not dig that hole much deeper.