Friday, December 21, 2007
This could go on forever!
Consumer Spending Surges in November
Consumers put aside worries about slumping home sales and soaring gasoline prices and headed to the malls in November, pushing spending up by the largest amount in 3 1/2 years. The Commerce Department reported Friday that consumer spending surged by 1.1 percent last month ...
With spending rising at a faster rate than savings, the nation's savings rate dipped into negative territory in November at 0.5 percent. That meant that households spent all of their incomes and either dipped into savings or borrowed to finance the higher level of spending last month.
"...Put aside worries?" -- nuh uh!
Inflation and tight credit are causing people to worry, who perhaps are needing to borrow to make ends meet!
Or, like the Commerce Dept., I believe in unicorns. Great galloping credit-happy unicorns who put aside all cares and woes!
Could be people were spending more because of Christmas too. Not everyone waits til December to shop.
Related to anonymous @ 2007-12-22 0744: I read somewhere that some of it might be due to thanksgiving being early this year.