Saturday, May 19, 2012

Slower consumer spending may reflect anxiety over pay. Modest gain after robust 1st quarter


American increased their spending more slowly in March, suggesting some are worried their paychecks aren't growing quickly enough. Consumer spending increased .3% in March.

Real incomes need to grow at a faster rate to prevent consumption growth from slowing down. The overall economy grew at an annual rate of 2.2% in the January-March quarter, down 3% from the October-December 2011 period. The weakness reflected government budget-cutting and weaker business investment.

Martin Crutsinger, Associated Press, The Boston Globe, May 1, 2012

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