So are we to be happy about the recession’s end? Maybe not all of us. It’s too sluggish to many people start smiling again. Too many are still unemployed and homeless.
A government report, however, states that personal income jumped up 0.2% to a total of $19.3 billion – a better-than-expected rise compared to the 0.1% pegged by analysts.
And the more income people have, the more money they can spend and largely the reason why personal spending also jumped by 1.3% in August. Again, better than the expected 1.1% increase.
In addition to the figures, the report also indicated a 3% drop in personal savings from $436 billion to $324 billion. This could mean two among other things – that people are strapped for cash and the more likely willing of people to part with their money.
These growths can be considered sluggish. But more buying power and more purchases mean that the economy is indeed recovering.
Source: CNN
