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Stimulus Boosts Americans' Incomes

Consumers tuck funds away: Savings rate hits 16-year high

By Kevin Spak, Newser Staff

Posted Jun 26, 2009 2:11 PM CDT

(Newser) – Incomes in the US got a big boost from federal stimulus dollars in May, the Commerce Department reported today. But weary consumers stashed most of that lucre away, sending the savings rate to a 16-year high. “Households are reverting to a more sustainable spending path vis-à-vis income,” one economist told the Financial Times.

Incomes jumped 1.4% in May, adding $167.1 billion to the economy. That doubled the 0.7% rise the month before. But with home prices and jobs continuing to dwindle, the hoarding is likely to continue. “Until there is meaningful and sustained improvement in labor market conditions, there will be no significant, sustained rebound in consumer spending,” said another economist.

This chart show personal income by month for the past 13 months.

In this April 11, 2009 file photo, Joe Walls empties a bag of fifty-cent-pieces into a Penny Arcade coin counting machine at TD Bank in Fairless Hills, Pa. (AP Photo/Mel Evans, File)

The stimulus has put more cash in American wallets. (Shutterstock)

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COMMENTS

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Showing 3 of 13 comments

Toon

Jun 27, 2009 12:12 PM CDT

godawgs, If you want you can compare GM to Toyota but then Toyota's number is not $45 its $45 plus current benefits plus the taxes they paid as their share of Japan's universal health care for past workers. Comparing apples to fruit baskets is rather dishonest don't you think?

Snarfeh

Jun 27, 2009 4:14 AM CDT

Hate it for GM. Run the business better next time. The working class got the tax cuts. You are pathetic and angry. Hate it for you.

AdaptAndOvercome

Jun 27, 2009 1:02 AM CDT

I hear that there are problems, but every time I go to the store, they are jamb packed with people. The gas lines at the pump are always long and kids are all out doing stuff with their frineds for the summer....shopping, eating out, movies, etc. I live near an interstate and travelers with trailors and boats and such are the norm. Things have certainly picked up in this part of Texas.

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US • Money • Politics

income • consumer spending • savings • economic stimulus package • consumers • household income

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Stimulus Boosts Americans' Incomes

Consumers tuck funds away: Savings rate hits 16-year high

OTHER STORIES ON OUR RADAR

income • consumer spending • savings • economic stimulus package • consumers • household income

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More Newser Stories

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

Ignore Glimmers of Hope, Economy's Still in the Tank

If Obama takes his foot off the gas, it'll be 1937 all over again

Q3 GDP Growth More Like 2.8% Than 3.5%

Spending and home prices are up, but not enough to help jobs

US GDP Jump Hollow if Unemployment Keeps Rising

... and it's still rising faster than before recession

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Stimulus Boosts Americans' Incomes

Consumers tuck funds away: Savings rate hits 16-year high

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OTHER STORIES ON OUR RADAR

income • consumer spending • savings • economic stimulus package • consumers • household income

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

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

Ignore Glimmers of Hope, Economy's Still in the Tank

If Obama takes his foot off the gas, it'll be 1937 all over again

Q3 GDP Growth More Like 2.8% Than 3.5%

Spending and home prices are up, but not enough to help jobs

US GDP Jump Hollow if Unemployment Keeps Rising

... and it's still rising faster than before recession

About Us

Site

Newser By Users

Community

Site Maps

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More News

What is Newser?