Personal Spending and Income Rises
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The new statistics are the latest to reinforce the position of central bankers that interest rates do not necessarily need to be lowered any time soon even as the economy decelerates.
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US personal incomes rose 1.5 percent in the second quarter of 2004, the fastest pace of growth in more than three years as income gains sped up in 33 states, the Commerce Department said on Tuesday.
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Consumers borrowing increased in January, reflecting an increase in auto loans.
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A report found that consumer spending in October chugged along while wages rose and inflation stayed at a level that the Fed chairman called Âuncomfortably high.Â
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The more your money multiplies, the easier its growth gets.
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The US Commerce Department said Monday personal income grew modestly in September, while consumer spending rebounded from the previous month.
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The Commerce Department says personal spending was flat, while incomes surged four-tenths of one percent, marking the biggest increase in three months.
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Spending rose slightly more than expected, while personal income rose 0.5 percent, the government said. For all of 2007, consumer spending grew by 5.5 percent, the weakest growth since 2003.
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Business & money: Spending binge looks likely to be followed by a big rise in personal insolvencies and falling house prices
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Shoppers spent more freely in July as consumer spending rose slightly, though tepid growth in personal income raised concern about whether the trend will continue.
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U.S. incomes and spending rose in October, providing the means for consumers to keep spending as the holiday shopping season approached, while core consumer prices rose modestly, the government reported on Thursday.
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Consumers  --  who play an important role in shaping economic activity  --  spent briskly in October, an encouraging sign that the final quarter of 2004 is getting off to a decent start. Incomes rose sharply.
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A new study shows that giving can make you wealthier.
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Give your retirement savings a boost this year.
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Personal incomes rose in January at the fastest clip in a year, bolstered by bonus payments to high-income executives and pay raises for federal workers. The extra income helped support a better-than-expected rise in consumer spending.
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Robust consumer spending on cars,  furniture and food in the third quarter helped the U.S.   economy advance more quickly than first thought, a government  report showed on Tuesday, while underlying inflation was the  tamest in decades.
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Consumer spending rose slightly in July, though tepid growth in personal income raised concern about whether the trend will continue.