Thoughts of recession in the U.S. waned slightly on news that consumer spending rose 0.6 percent in September. The mood was spoiled somewhat as incomes rose less than expected contributing to the lowest savings level in nearly four years.
“Given the state of consumer sentiment and the savings rate, we should see moderate spending, at best, going forward,†said Sean Incremona, a senior economist at 4Cast Inc. in New York. “The savings rate is just one of those warning signs that says we’re not pulling ourselves out vigorously, so the economy still has a lot of vulnerability.â€
Source: Bloomberg
