Consumer Spending Weakest in 8 Months Despite Solid Income Growth
Consumer spending grew at the weakest pace
in 6 months in March, despite solid income growth and good news on a key
inflation reading in the government's latest measure of the U.S. economy.
The weak spending came even as the report showed individual incomes jumped
0.7% in March.
Continue reading... "Consumer Spending Weakest in 8 Months Despite Solid Income Growth" »
Personal income increased $65.4 billion, or 0.6% in February while ,
consumer spending also rose by 0.6% or $55.5 billion, 
Among
the key US economic indicators this week: ISM services index rose to 59;
productivity grew a healthy 3% annual rate in Q4; consumer credit surged
4.5% to a record $2.4 trillion in 2006; initial jobless claims increased
3,000 last week; and January retails chain store sales jumped a strong
3.7%
Personal
savings rate for
all of 2006 declined to a negative 1%, lower than
a negative 0.4% in 2005 and was the lowest since a
negative 1.5% savings rate in 1933 during the Depression, according to 
U.S.
retail sales rose 0.9% in December, the
strongest pace in five months, to $369.9 billion. driven by strong 3%
jump in electronic gadget sales, according to
the Commerce Department. The increase was better than the 0.7%
advance that economists had forecast.
This
week saw a slew of good economic indicators in U.S., as consumer
confidence jumped at an 8 month high, new homes sales and existing homes
sales showing positive turns, and the job market resilient with only 1,000
rise in jobless claims.
Personal
income increased $33.8 billion, or 0.3 percent, and disposable personal
income (DPI) increased $27.0 billion, or 0.3 percent, in November, 
Almost three-quarters of Americans believe inequality is a major issue,
versus 24% who don't think so, according
to a new Bloomberg/Los Angeles Times poll. The anxiety about the growing rich-poor divide unites Americans,
crossing income and political divisions:
