Jim,
Spending soars to highest in eight years!
US consumers fell into the clunker trap! Unless they bought their car cash, many US consumers chose to increase their debt in such challenging time!
I really don’t get it. When will they learn??
Regards,
CIGA Christopher
Spending soars to highest in eight years on clunkers’
Real disposable incomes off 0.2%, marking third monthly decline in a row
By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) — Spurred by government subsidies to buy cars, U.S. consumer spending soared 1.3% in August, the fastest increase since the post-Sept. 11 shopping binge of eight years ago, the Commerce Department estimated Thursday.
Spending on durable goods rose 5.3% in August as auto sales surged on the government’s cash-for-clunkers program.
The clunkers program accounted for most of the increase, the government said. The program, intended to get motorists to trade in older vehicles that were less fuel-efficient, ended in August, and most analysts expect that the boost in spending was a one-time event.
