December's Personal Income Is Half Of Spending Rate

Jan. 13, 2005
By John S. McClenahen Economists at UBS Investment Research in New York expect household cash flow to increase during the next few months as people adjust their tax liabilities. "The extra cash will underpin consumer spending," they predict. That ...
ByJohn S. McClenahen Economists at UBS Investment Research in New York expect household cash flow to increase during the next few months as people adjust their tax liabilities. "The extra cash will underpin consumer spending," they predict. That clearly was not the case in December 2003. Personal income increased $18.8 billion, or 0.2%, while personal consumption expenditures during the final month of last year increased $35.3 billion, or 0.4%, the U.S. Commerce Department reported on Feb. 2. "We expect the resulting drop in the saving rate -- to 1.3% -- should be reversed in [the] January [data] when tax cuts and hiring bolster income growth," says UBS.

Popular Sponsored Recommendations

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Smarter Savings for Manufacturers - Guide

Sept. 11, 2023
Boost your manufacturing sales and revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!