Consumers Keep Their Spirits High
In this morning's Personal Income and Outlays report from the Bureau of Economic Analysis, the headline data show that personal income advanced 0.4% in March from the month before -- better than the 0.3% in both January and February. And after subtracting inflation and taxes, real disposable income edged up 0.2% in March, which was, again, better than the 0.1% drop in real disposable incomes in each of the first two months of the quarter.
Meanwhile, personal spending advanced 0.3%, and by 0.1% in real terms. Since spending growth was less then income growth, the savings rate advanced by 0.1 percentage point to 3.8%. In an ideal world, we'd like to see incomes grow fast enough that spending can grow while the savings rate can still increase to levels that would allow households to reduce debt and build retirement savings portfolios....708 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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