Consumer spending in US rises last month
Source: Agencies |
December 22, 2012, Saturday
|
Print Edition
Print Edition
US consumers spent and earned more in November, rebounding from the disruptions caused by a storm.
The Commerce Department says consumer spending rose 0.4 percent compared with October. Personal income added 0.6 percent, the biggest gain in 11 months.
Wages and salaries rose US$41.1 billion in November. Superstorm Sandy, which hit the Northeast and New York City, had cut wages at an annual rate of US$18.2 billion in October. Spending had fallen 0.1 percent in October compared with September.
With income rising faster than spending, the saving rate rose to 3.6 percent of income in November, up from 3.4 percent in October.
Economists remain concerned that income growth is too weak to support sustained increases in spending, especially at a time when Americans are worried about possible tax increases in the new year from the "fiscal cliff." That's the name for automatic tax increases and spending cuts due to take effect in January unless Congress and the Obama administration reach a budget deal before the new year.
Consumer spending is closely watched because it accounts for about 70 percent of economic activity.
On Thursday, the government said the US economy grew at an annual rate of 3.1 percent in the July-September quarter, more than twice the 1.3 percent growth from April through June. Part of the improvement came from a 1.6 percent rise in consumer spending, slightly better than in the spring.
But analysts think economic growth has slowed in the October-December quarter to an annual rate below 2 percent. Uncertainty about whether or how the fiscal cliff will be resolved has led some businesses to delay or reduce hiring and investment in major equipment.
The Commerce Department says consumer spending rose 0.4 percent compared with October. Personal income added 0.6 percent, the biggest gain in 11 months.
Wages and salaries rose US$41.1 billion in November. Superstorm Sandy, which hit the Northeast and New York City, had cut wages at an annual rate of US$18.2 billion in October. Spending had fallen 0.1 percent in October compared with September.
With income rising faster than spending, the saving rate rose to 3.6 percent of income in November, up from 3.4 percent in October.
Economists remain concerned that income growth is too weak to support sustained increases in spending, especially at a time when Americans are worried about possible tax increases in the new year from the "fiscal cliff." That's the name for automatic tax increases and spending cuts due to take effect in January unless Congress and the Obama administration reach a budget deal before the new year.
Consumer spending is closely watched because it accounts for about 70 percent of economic activity.
On Thursday, the government said the US economy grew at an annual rate of 3.1 percent in the July-September quarter, more than twice the 1.3 percent growth from April through June. Part of the improvement came from a 1.6 percent rise in consumer spending, slightly better than in the spring.
But analysts think economic growth has slowed in the October-December quarter to an annual rate below 2 percent. Uncertainty about whether or how the fiscal cliff will be resolved has led some businesses to delay or reduce hiring and investment in major equipment.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
