Credit, Economy and Financial News from TruckingFactor.com

Incomes and Spending Down in December

Reflecting the direction of the economy, both consumer spending and personal incomes fell in December. The Commerce Department reported that spending declined 1% after falling a revised 0.8% in November. Incomes shrank 0.2% after November's 0.4% drop. For all of 2008, spending rose 3.6%, the smallest increase since 1961, while incomes grew 3.7%, the smallest advance since 2003. With the recession in full swing, consumers are focusing much more on saving money, which is reflected in the personal savings rate. Personal savings surged in December to 3.6% of disposable income from 2.8% in November, the largest savings rate since May 2008.

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Date Last Updated: 02/09/2009