February 1, 2011
THE PRICE OF EVERYTHING IS DOWN, BUT OUR 401ks ARE UP:
Americans earn and spend more, save less (Annalyn Censky, January 31, 2011, CNNMoney)
As incomes slowly creep back up, Americans are spending more freely and saving less. [...]
Meanwhile, Americans saved $614.1 billion in December, compared with $634.4 billion the prior month. And personal savings as a percentage of disposable income nudged down to 5.3% from 5.5% in November.
Economists expect disposable income to increase further in January, boosted by the 2% payroll tax cut that started at the beginning of the year.
The core Personal Consumption Expenditures price index, an inflation gauge that strips out volatile food and energy prices and is closely watched by the Federal Reserve, fell to 0.7% -- the lowest level on record since the Commerce Department started tracking the data in 1959.
Posted by Orrin Judd at February 1, 2011 7:10 AM