It's been 11th consecutive month since people started to spend money. American's have started to spend less money due to unemployment and poor economic conditions. The economy can rise and come alive only if people start spending and get the wheel rotating. People have started to pay credit cards while borrowing money for cars and other products. It is kinda of a mixed picture of expense and saving. Hope that this mixture refines to spending since it is the necessary condition for economic recovery.
"But the record 11-month decrease in overall borrowing shows consumers are still holding back amid lingering economic uncertainty and 9.7 percent unemployment."says, businessweek.com
A survey conducted by Thomson Reuters said Friday that the total borrowing dropped by $1.8billion-- far less than the revised $21.8 billion decline in November. This was also below $9 billion expected by analysts .
Current issue that is bothering the U.S. government is that the consumer can derail the recovery of economy if people start to save more on what they earn. Consumer spending is responsible for nearly 70 percent of economic activity.
"But the record 11-month decrease in overall borrowing shows consumers are still holding back amid lingering economic uncertainty and 9.7 percent unemployment."says, businessweek.com
A survey conducted by Thomson Reuters said Friday that the total borrowing dropped by $1.8billion-- far less than the revised $21.8 billion decline in November. This was also below $9 billion expected by analysts .
Current issue that is bothering the U.S. government is that the consumer can derail the recovery of economy if people start to save more on what they earn. Consumer spending is responsible for nearly 70 percent of economic activity.
Hi,
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