Consumer Behavior October 07
November 27, 2007
October saw the weakest increase in income since April, rising only .02% (.04 in September) economist over at briefing.com expressed. Spending also saw .02% gain, trailing .03% the previous month. Meanwhile, prices paid rose .03% - and the dollar has been going down all year. What’s going on? What does this all mean?
Right now, it just means the economy is slowing down, as it should be. Prices are topping out because of the crude oil prices and the holiday season played its role to most consumers who went on a slight budget to ensure funds. The credit market is also playing a twisted game on the economy and that threat is growing, this could be the go ahead for the Federal Reserve to cut interest rates even further at its next meeting.
