U.S. consumers increased their spending in December at a slower pace,
while their income grew by the largest amount in eight years. Income
surged because companies rushed to pay dividends before income taxes
increased on high-earners.
The Commerce Department said Thursday that consumer spending rose 0.2 percent last month. That's slightly slower than the 0.4 percent increase in November.
Income jumped 2.6 percent in December from November. Companies accelerated dividend payments to beat the January rise in income tax rates. It was the biggest gain since December 2004.
Read more: http://finance.yahoo.com/news/us-consumer-spending-slight-0-133933209.html
The Commerce Department said Thursday that consumer spending rose 0.2 percent last month. That's slightly slower than the 0.4 percent increase in November.
Income jumped 2.6 percent in December from November. Companies accelerated dividend payments to beat the January rise in income tax rates. It was the biggest gain since December 2004.
Read more: http://finance.yahoo.com/news/us-consumer-spending-slight-0-133933209.html
1 comment:
Usually when there’s an increase in consumers’ income then there’s also an increase in spending. And it’s easy to understand why, when people have more money then they are confident in spending more. But I think that it’s not worth to forget about budgeting and do not overspend. Lots of Americans do not have emergency funds so it would be reasonable to start saving more money. Many people overspend and then start using credit cards and instant loans online to make ends meet. So American consumers should find the right balance between saving and spending and use their extra money wisely.
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