rssThis Month’s Economic Update: Inflation Up, Income Holds
Monday, March 29, 2010 at 4:04 pm
- 9 Comments
In this month’s trickle of economic data comes a little good news for the market, even if it’s perhaps not great news for people’s bank accounts: Consumer spending was up even as incomes were flat in February. Spending wasn’t up by much — just .3 percent — but the fact that it rose even as wages remained flat indicates that people feel more secure spending money they don’t necessarily have.
Economists have long said that consumer spending needed to rise to encourage businesses to invest in new employees.
In somewhat less heartening data that may belie the idea that consumer confidence rose with spending, consumers spent that extra money on food and clothes rather than durable goods like cars or appliances. Worse yet for consumers, the good economic news sent oil prices up, which could drive inflation up for March.
Although unemployment figures for March won’t be available until later in the week, economists expect the unemployment rate to hold steady at 9.7 percent despite the addition of up to 200,000 jobs. There may or may not be pent-up demand in the market causing the rise in consumer spending, but that demand has yet to be reflected in the labor market.
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Comment posted March 30, 2010 @ 3:21 am
they only reason the unemployment rate might hold at 9.7% is because they didn't include the long term unemployed in their jobs bill.so no extensions and everything looks good right not so fast. the real unemployment rate is over 20% and there are really about 30 million people out of work. these are the numbers MR. OBAMA and his people don't want you to NO! the economy is worse now than when he took office. take a look at gas prices lately almost $3.00 a gallon and going up. by groceries lately prices going up on them. where MR. OBAMA is the change you promised wheres the jobs? OH that's right we got health care who's going to pay for it with nobody working? I voted for you and what a huge mistake I should have stayed home and not voted.your the same as the rest that's been in there only difference is your skin color and I don't care about that. your a crook just as everybody in government is. take care of the rich fuck the poor for there is no middle class anymore!!!!!!
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