Working 4 you: American spending shows positive signs for the economy
SPOKANE, Wash. — Some good news for the economy. Americans are spending more!
Purchases of durable goods, such as furniture and cell phones are increasing. For the month of August, purchasing of such items increased 2% in America. That may not seem like a lot, but compare that to an increase of only 0.1% in July.
This is according to data released by the Bureau of Economic Analysis.
But what drove the August rush in spending?
The biggest factor was auto sales, everything from cars to parts, which accounted for half the gains.
People typically don’t make big purchases like cars unless they feel confident in the economy and their personal finances.
Overall, consumer spending increase a total of 0.5% in August.
Economists say the increase in spending is a good sign for the economy. Some say buyers are a critical indicator of the economy’s health since they make up a majority of how much product gets produced in the United States.
After the financial crisis in 2008 and the recession, people cut back heavily on purchases. But, as more people are finding jobs, that should translate into more spending.
Incomes have ticked up every month this year.
August saw one of the strongest gains for 2014 in spending, a positive sign, especially since spending in July was flat.
Economists say that a country can’t have a strong economic growth without consumers leading the way.