Wednesday 3 August 2011

US Consumer Spending Unexpectedly Declines, First Drop in 20 Months; Personal Savings Rate Highest Since August 2010

http://globaleconomicanalysis.blogspot.com/2011/08/us-consumer-spending-unexpectedly.html

Savings Rate Increases as Spending Declines

Consumers spent less on food and gas because of declining prices but did not spend more elsewhere to make up for it. Since wages rose (barely), the savings rate went up.

Did economists expect this?

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