MSNBC Reports Americans Saving More, Spending Modestly
msnbc.com news services just published a report, “Americans saving more, spending modestly“. Some highlights from the article said that:
“Household savings rates are at the highest level in more than 15 years in May.” The savings rate, which was almost zero in early 2008, rose to 6.9 percent, the highest level since December 1993. “The higher savings rate is healthy in the long term, economists said.”
“Consumer spending accounts for 70% of the economy and the Commerce Department said Friday that consumer spending rose 0.3 percent in May.” Based on polls, there are signs that consumer confidence is also on the increase which according to economists could help jump start the economy in the second half of the year.
“Without vigorous consumer spending, the government may have to do more to revive the economy, possibly through further tax breaks and spending.”
“Rebound is expected to be subdued with unemployment at a 25-year high of 9.4 percent, and is expected to continue rising.” Cautious households will continue to save even more against the threat of further job losses.
“The weak economy has kept a lid on prices. An inflation gauge tied to consumer spending edged up 0.1 percent in May compared with April.”
The Associated Press and Reuters contributed to this report. For the complete article click here
