|Shoppers in Hialeah, Fla., last month. Consumers boosted spending in September but incomes barely budged. (Alan Diaz/File/Associated Press/file)|
Consumers spending more, and saving less
Americans’ incomes have stagnated for three straight months. Yet they boosted their spending in September 0.6 percent - three times the increase in August. Under normal circumstances, that would be a troubling sign for the economy. But a closer look at Friday’s report from the Commerce Department on September income and spending suggests another possibility: Many people are cutting their savings because the interest they are earning has become nearly worthless.