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View Full Version : U.S. consumer spending grows at fastest pace since 2009, savings drop



Dr. Who
11-02-2017, 07:44 PM
WASHINGTON (Reuters) - U.S. consumer spending recorded its biggest increase in more than eight years in September, likely as households in Texas and Florida replaced flood-damaged motor vehicles, but underlying inflation remained muted.

Households, however, dipped into their savings to fund purchases last month, pushing savings to their lowest level since 2008. Against the backdrop of lackluster wage growth, the drop in savings suggests that September’s robust pace of consumer spending is probably unsustainable.

“Relying on consumer savings to move the economy forward is not going to last for long,” said Chris Rupkey, chief economist at MUFG in New York.

The Commerce Department said on Monday consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 1.0 percent last month after an unrevised 0.1 percent gain in August. The increase, which also included a boost from higher household spending on utilities, was the largest since August 2009.

http://www.reuters.com/article/us-usa-economy-spending/u-s-consumer-spending-grows-at-fastest-pace-since-2009-savings-drop-idUSKBN1CZ1GN?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+(Busin ess+News)

In other news:

Most Americans live paycheck to paycheck.

Nearly 10 percent of those making $100,000 or more say they can't make ends meet.

Overall, most workers said they are in debt and many believe they always will be.

No matter how much you earn, getting by is still a struggle for most people these days.


Seventy-eight percent of full-time workers said they live paycheck to paycheck, up from 75 percent last year, according to a recent report from CareerBuilder.


Overall, 71 percent of all U.S. workers said they're now in debt, up from 68 percent a year ago, CareerBuilder said.

https://www.cnbc.com/2017/08/24/most-americans-live-paycheck-to-paycheck.html