Customer spending has decreased behind the speed of accelerating pay, notes NASDAQ. While Marketwatch implies this could be a sign that individuals are saving in reserve for holiday shopping, some economic experts see yet another indication of a slow economic recovery. I found this article at: [URL="http://personalmoneynetwork.com/moneyblog/2011/11/23/consumer-spending-october/"]http://personalmoneynetwork.com/moneyblog/2011/11/23/consumer-spending-october/
Customers consume less
In Oct 2011, the personal intake expenditures went up 0.1 percent while in two of the previous three months there were â€œsolid gains,â€ as reported by the U.S. Commerce Department. Last month, incomes went up 0.4 percent. They were flat all summer long.
Economist Chris Christopher of Global Insight sees good things in the recent fluctuations.
â€œThe income improvement and decline of some prices is a good sign as we head into the holiday season,â€ Christopher said.
Consumer spending should be going up, as reported by economists surveyed by the Dow Jones Newswires.
Getting better in the future
Millan Mulraine explains that consumers are doing their holiday shopping. That might be the only reason or the increase.
Savings havenâ€™t gone up with the increased wages. In September, the personal savings rate was down to 3.3 percent. It went up to 3.5 percent in October. There was a very low savings rate in September. It was the lowest it has been since December 2007.
Fewer seasonal jobs
For the week ending November 19, the first jobless claims were seasonally adjusted to 33,000 after a 2,000 climb, according to the U.S. Department of Labor. For three weeks, the claims fallen. Experts are just happy that the numbers are under 400,000 still.
â€œCompanies are not happy about the state of the economy, but their fears seem to be easing slowly in the face of decent growth in domestic demand,â€ said Ian Shepherdson of New York-based data analysis company High Frequency Economics.
Not as any long lasting goods around
In October, there was a drop in tough goods that were supposed to last over three years. This drop was unexpected, as reported by NASDAQ. This trend is tied to a drop in commercial airplane orders. They fallen 16.4 percent. Long lasting goods orders went up in October 0.7 percent if you forget about the transportation dip, which is better than the 1.5 percent fall that was expected.
Fewer individuals spending