Skip to comments.Business Week: U.S. Economy -- Rising Incomes Lead to Gains in Spending, Savings
Posted on 06/28/2010 9:59:24 AM PDT by SeekAndFind
Incomes grew faster than spending in May, making it possible for American households to simultaneously increase savings and support the economic recovery.
Gains in payrolls, longer workweeks and rising pay give Americans more confidence and the means to maintain spending in coming months. The Federal Reserves decision last week to keep interest rates unchanged may help households weather the fallout from the European debt crisis, unemployment hovering near a 26- year high and tight credit.
The consumer is finally starting to see some positive wage gains as the job market starts to improve, said Omair Sharif, an economist at RBS Securities Inc. in Stamford, Connecticut. Consumer spending isnt going to propel the recovery forward, but it should be more than enough to sustain it. Overall, this was a fairly solid report.
Stocks gained, led by cigarette and telephone companies, after the Supreme Court rejected the Justice Departments bid for as much as $280 billion in tobacco profits and Sprint Nextel Corp. turned on fourth-generation service in more markets. The Standard & Poors 500 Index rose 0.4 percent to 1,080.70 at 11:16 a.m. in New York.
The median estimate of 61 economists surveyed by Bloomberg news called for a 0.1 percent gain in spending. Projections ranged from an increase of 0.3 percent to a 0.5 percent drop.
Consumers are less cautious than they were previously, Robert Niblock, chief executive officer at Lowes Cos., the second-largest home-improvement chain, said in a June 23 teleconference. But they still know that were still not out of the woods yet.
(Excerpt) Read more at businessweek.com ...
Lowes last month said it will add more than 1,400 positions for employees to visit customers homes to sell them windows, doors and other products. The retailer is filling those jobs internally and hiring new employees, Maureen Rich, a spokeswoman for the Mooresville, North Carolina-based company said in a May 28 interview.
Exhibit A as to why Zero is closing in on 50% approval again despite oil gushing and 10% unemployment.
In the tank propaganda.
Must be those union jobs with guaranteed rising income. I haven’t seen a raise in 3 years. I took a pay cut to keep working.
Soon to be “unexpectedly” revised downwards on page 17.
things are just so wonderful, aren’t they? Only if you’re not among the 10 percent unemployed (really over 17 percent when discouraged job seekers are factored in).
ABSOLUTE AND COMPLETE BULLSH!T!
Happy talk generated by government toadies.
If you don’t have a government check you are rigorously screwed.
I owned three businesses... and one obama has already killed... one is on life support due to the oil spill... and one is suffering from the economic disaster that is the US Economy under o*ickhead. This story is nothing but lies built upon lies. Consumer outlook is at the lowest in recorded history... we are in a depression... and socialist Europe just told the marxist muslim kenyan to piss off. Yeah... skittles, rainbows and unicorns.
Yeah, thats what our problem is.
Rising wages must mean the ones still employed are getting the pay of those no longer employed.
But we haven’t seen it.
I wonder if Lowes will sell doors and windows to those living on unemployment?
Probably not... and home des-pot is fag land so what is a person to do?!
These lefties crack me up. They crank out this BS to make all us sheeple believe that life is getting better for all.
They know it sucks, but when they keep putting this stuff out, it shuts people up because they hope those in pain will figure that there must be something wrong with theirself, because OH BOY, it is getting better.
It is certainly disgusting.
I was told today that the local Cummins plant (carburetors, IIRC) is working its employees overtime and has $1M in back-orders. Another manufacturer, about 30 miles away, is rehiring laid off employees.
And actually, last month we did have more income and did manage to sock away a tiny bit, rather than have to dip into savings, as has been the experience of the past 18 months.
I think any upturn/change is specific by local and sector. These things can be contagious, so your turn may be coming. It may be rolling, so one sector will do better for a few months, then fall back and another have a good couple of months. There is obviously limited capital and discretionary income out there.
I was out shopping with a friend on Saturday and everywhere was quiet as a tomb. That includes bargain venues like Aldi’s, Sam's and the Lutheran resale shop. We did Wendy's for lunch and it was about 2/3 full at 12:30 on a Saturday.
We have been taking things week-by-week and don't trust it, but we are grateful for the respite.
I am happy for you and I hope it spreads but we are in a depression in Mississippi and the oil disaster is making our future down here look to be one of long term economic pain. I pray a lot.