http://money.cnn.com/2013/03/29/news/economy/personal-income-spending/index.html?iid=SF_E_Lead
In January there was a drop in personal income but
expectations in the end of February was thought to raise income by 0.8% and spending
by 0.6%. Due to expectations were lower
than actual income then prices were did not rise at the same amount as to
income. People had now higher incomes
then people spent more; “personal incomes rose 1.1% in February, while spending
rose 0.7%,” the Commerce Department said.
The raise in income makes people happier and hope in our economy
becoming better is more optimistic.
It looks like the economy is om the right track to recovery with all these figures of increasing incomes and spending. As you mentioned, an increase in incomes can really boost the consumer confidence which leads to more spending.
ReplyDeleteA rise in income will hopefully Increase consumption, and as a result boost consumer confidence even more. As long as people are consuming the economy will continue to improve
ReplyDeleteAn increase in consumption generated from increased income will hopefully help spur the economy.
ReplyDeleteIf consumer income is on the rise this will only boost consumer confidence. How long this boost in spending will last is still very undecided but for now it looks like consumer spending has been increasing over the last couple months.
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