Joe Public Starts Saving Rather Than Spending

Posted: June 1, 2009 at 7:41 am

money-stack-imageThis morning we got to see the Commerce Department’s results showing a gain of +0.5% in income and a drop in spending of -0.1%.  We had estimates from Bloomberg at -0.2% on income, and -0.2% on spending.  It seems those who are keeping their jobs are making more money and they are still spending better than expected.  Disposable personal income also showed a gain of +1.1%.

Saving as a percentage of disposable income came in at a reading of 5.7%.  That looks the highest reading in over a decade.  Saving is great for individuals and their security in the future, but to much savings means too little spending for economic growth models ahead.

JON C. OGG

Read more: Consumer Goods, Economy
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