Consumer Spending Sees Little Increase
Although consumer spending increased in the month of March, it is expected that not much increase will be seen for the next few months due to the fact that income has not seen much growth as well. With less income, consumers are less likely to spend as much money since they do not have much to spend in the first place. Many believed that the increase in spending for the month of March came mainly from its cold temperatures. Consumer spending on products such as health care and clothing increase by a slight 0.2% last month.
This minor increase in consumer spending is not healthy for our economy, and most definitely would not lead to further growth. Investors will see this as a sign to not make many investments since they see that the public is not willing to spend, which in turn will yield a smaller profit margin for investors. The economy is currently being negatively affected by many factors, and this low increase in consumer spending is one of them.
Written by: Jessica Ho
Source: The Wall Street Journal