This is quite an interesting development:
“Boosted by spending on autos and other durable goods, real U.S. consumer spending increased 0.5% to a record high in March, at last surpassing the pre-recession peak set in November 2007, the Commerce Department estimated Monday. After-tax, inflation-adjusted incomes increased 0.2% in the month, with transfer payments such as unemployment benefits accounting for much of the gain. The tepid income gains should hamper the economic recovery, economists say. With spending growing much faster than incomes in March, the personal savings rate fell to 2.7%, the lowest since September 2008.”
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Source:
Consumer spending above pre-recession level
Rex Nutting
MarketWatch, May 3, 2010
http://www.marketwatch.com/story/consumer-spending-above-pre-recession-level-2010-05-03
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