Posts Tagged ‘Consumer spending’

Consumers Loosening Purse Strings

March 30, 2010

Some Reasons for Optimism this Selling Season

Good news for retailers in today’s Wall Street Journal: personal spending in February rose 0.3% from the month before, the fifth consecutive month it has climbed. That’s pretty interesting for three reasons:

  1. February had plenty of really bad weather in many major markets across the East and South, enough to keep many shoppers at home;
  2. Personal income was flat from the previous month so consumers didn’t have any extra money to use for shopping, and
  3. Consumers have reduced the amount they are stuffing into savings accounts, perhaps giving them more money to use for discretionary spending.

Consumers were spending at an annual rate of 3.1% in 1Q, according to the WSJ, the strongest pace since 1Q of 2007. The report says consumers are spending money on big ticket items, such as furniture.