10/31/2005

Consumer spending bounces back in Sept

I found this article and thought that it was interesting. I think that it is a good sign that people are spending money. It helps people to invest money in our economy knowing that the trends are positive. It said that there was a 1.7 percent growth in the income in America and there was a .5 percent increase in consumer spending. Economists expect consumer spending to be moderate in the last three months of this year. Auto sales are dropping off with the end of employee pricing and energy prices cause cut backs. I hope the trend continues and our country continues to get better.

3 comments:

Logan said...

Sounds like good news! When people spend money everyone is better off. I think that in the United States of America, we have a spirit of bouncing back. Even after terrible destruction we still seem to find ways to cope and even flourish.

Connor said...

I have read many articles stating the same thing: consumers are spending their money. The only problem is that they are not spending quite as much as usual. With the holiday season coming on rapidly, I wonder how the retailers will do. We should keep an eye on the price tags because if people are not spending as much as usual, as soon as the season is over there should be some excellant sales just to push inventory out the door!

Dr. Tufte said...

There's an important message here to carry away from college.

The U.S. economy generates about $12,000 Billion in GDP per year.

Katrina destroyed something like $300 Billion in wealth.

That's about 9 days worth of GDP. And, all that wealth was not accumulated at once, but out of many years worth of GDP.

The message here is that we shouldn't be surprised at this sort of thing - on the scale of the U.S. economy, Katrina is a small thing.