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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.
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