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.

1 comment:

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.