Consumer Spending Rises

December 21, 2007 Leave a comment

Good News – Bad News – that seems to be the cycle over the past six months. Jobs are up but the numbers are suspect, Inflation is in check, but milk is $4 and gas is over $3, and now spending is up, but it is on borrowed money.

Income rose by 0.4% in November. That is a healthy clip. Spending also rose in November – 1.1%. So either consumers saved in September and October to buy in November or they are using credit. The former isn’t a bad deal, but the latter is terrible, especially considering the overall economy being teetering on a recession.

Consumer spending does make up a large chunk of the GDP, causing analysts have revised their predictions, but I think it is just delaying the inevitable. Until something dislodges the log jam that is the US economy (jobs, housing, markets, or whatever) we will see no real economic growth for the middle class.

Filed under Behavior, compensation

About benleeson
My name is Ben Leeson. I currently work for a large financial company in IT. I went to school at Marist College in Poughkeepsie, NY. I graduated with a B.S. in Business Administration concentrating in HR. Professor William Brown taught me and I enjoyed his classes; even acquiring an appreciation for just about all things HR. I didn’t pursue a job in that field after college but I’ve kept up with it. This blog will further my fascination with all things HR. I hope to grow my knowledge of the area through thoughtful writings and spirited feedback. I will attempt to have a fairly routine style so anyone reading can come to expect certain segments. Please excuse my incorrect grammar and occasional misspelling.

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