Savings Up, Spending Down - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Savings Up, Spending Down

Savings Up, Spending Down

Savings Up, Spending Down

Data released by the Commerce Department indicated that consumer spending tapered off in October, rising only 0.1 percent, much less than the forecasted amount. By contrast, spending increased 0.7 percent in September. Spending accounts for roughly 70% of all economic activity within the United States.

The sluggish spending exhibited by consumers is despite the largest gain in income since March – 0.4 percent. This could be because despite incomes being on the rise, they are not keeping up with inflation. Although inflation is showing signs of subsiding, which will make a not insignificant difference in the pockets of many consumers, affording them more disposable income to play with.

With the country-wide unemployment rates holding fast at 9%, more and more households have been restraining their spending and making the effort to save. Average savings rates rose in October 3.5%, up from the 3.3% rate in September. In terms of actual money, October saw an annual rate of $400.2 billion saved. In September, the annual savings rate was $376.9 billion.

“It will probably be a lukewarm holiday season. We are not hearing anecdotes of a major pullback, nor does it look like consumers are accelerating their spending,” stated Michael Feroli who is the chief U.S. economist at JPMorgan Chase & Co., according to Bloomberg.

As a result, so of the country largest retail chains are offering extensive discounts just as the holiday shopping gets underway. Department stores such as Kohl`s and Macy`s have indicated their plans to avail shoppers of even more discounts and sales in the effort to entice more spending. Black Friday, which kick off the unofficial start of the holiday shopping season, is Friday, November 25.

Although high-end retailers such as Saks Inc. has claimed that the affluent customers that patronize their stores seem to be doing all right, other retailers are markedly less hopeful.

“Until the U.S. begins to see robust improvement in jobs and signs of recovery in the housing market, we believe consumer spending will likely continue to be soft and uneven,” claimed Doug Scovanner the chief financial officer at Target Corp., according to Bloomberg.

The orders placed for durable goods also sank in October, possibly indicating that manufacturing may slow down in tandem with spending.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

The New Marriott Rewards Premier Plus Credit Card Coming Soon

Posted: April 23, 2018

Chase and Marriott have joined forces to launch the Marriott Rewards Premier Plus credit card. It will offer cardholders 6x the points when booking stays at Marriott hotels, and double points on all other purchases. It will also offer ... Continue reading
MasterCard and Fred Segal Open Shop on the Strip

Posted: April 20, 2018

MasterCard and Fred Segal have opened Rock ‘n Roll Holy Land on Sunset Strip, an immersive exhibit giving people an insider’s view of the history of the Sunset Strip. The shop also puts a unique digital spin on window shopping using ... Continue reading
New Amex Centurion Lounge Opening in Denver

Posted: April 19, 2018

Are you a regular at Denver International Airport (DEN)? If so, you may want to check out the new Centurion Lounge when it opens next year. It’s stated to be the eleventh lounge in the Centurion line up. Offering airfield views and taking ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!