Spending Surges as Inflation Cools, but Saving Rate Dips to 17-Year Low

Source: Economics Group of Wells Fargo Bank, N.A.Summary Personal income grew for a second straight month and inflation is cooling, if only incrementally. The fact that spending continues to grow is partly a function of a trend decline in the saving rate which dipped to a rate last seen in 2005. Revisions also took a bite out of the pile of excess savings. Carry On, My Wayward Son Consumer income is growing, but their spending is growing even faster. The rising cost of goods and services means that nominal spending would increase even if the volume of goods and services consumed were flat. But it is more than that. Consumers are increasing their spending even after adjusting for inflation. READ FULL ARTICLE>>