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Consumer Spending Rises in Jan.

But experts don't expect boost to last

By the Associated Press

Posted Mar 2, 2009 8:32 AM CST

(AP) – Consumer spending rose in January after falling for a record 6 consecutive months, pushed higher by purchases of food and other non-durable items. But the increase is expected to be fleeting given the problems facing the US economy. Spending rose 0.6% in January, better than the 0.4% gain economists expected, the Commerce Department said today.

Personal incomes rose 0.4% in January, partly reflecting cost-of-living adjustments provided to millions of Social Security recipients. Still, that was better than the 0.2% decline economists expected. The personal savings rate surged to 5%, the highest level since 1995, as consumers continued to sock away more of their income amid the deepening recession.

A worker stocks shelves last week in Des Moines, Iowa. (AP Photo)

Customers select produce at a supermarket in Chicago. Food purchases helped boost consumer spending. (AP Photo)

Consumer spending is up after a 6-month decline. (AP Photo)

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COMMENTS

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Showing 3 of 3 comments

Forderon

Mar 1, 2009 11:41 PM CST

People are just stocking up because of the cold. It's not really a sign of higher consumer confidence. Quite the opposite.

Guest

Mar 1, 2009 10:08 PM CST

There's nothing like kicking the American people when they are down. Keep raising prices and we'll learn to live without you.

Derni

Mar 1, 2009 10:01 PM CST

Until the housing market heads North everything will stay the way it is-as housinghgoes-so goes the economy-services -workers-materials. And housing isn't going to turn around until 2 years down the road.

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Consumer Spending Rises in Jan.

But experts don't expect boost to last

OTHER STORIES ON OUR RADAR

shopping • income • consumer spending • savings • economy • financial crisis

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Personal Spending Slows to a Crawl in February

Inflation cooling, but consumer confidence is down

Consumer Spending Up... Thanks to Gas Prices

Personal income up 0.3%, but inflation hits hard

Once Again, We're Spending More, Saving Less

Spending rose twice as much as income in March

Women Drive Recovery, But Dissed By Retail

Biz approach to females: take 'a male product and paint it pink'

Lousy Retail Sales Will Delay Recovery

Recession isn't over as far as consumers are concerned

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Consumer Spending Rises in Jan.

But experts don't expect boost to last

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OTHER STORIES ON OUR RADAR

shopping • income • consumer spending • savings • economy • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Personal Spending Slows to a Crawl in February

Inflation cooling, but consumer confidence is down

Consumer Spending Up... Thanks to Gas Prices

Personal income up 0.3%, but inflation hits hard

Once Again, We're Spending More, Saving Less

Spending rose twice as much as income in March

Women Drive Recovery, But Dissed By Retail

Biz approach to females: take 'a male product and paint it pink'

Lousy Retail Sales Will Delay Recovery

Recession isn't over as far as consumers are concerned

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?