People of US spend more and save less in the month of July
As per to a financial report, the consumer spending of US has climbed up by a faster rate than expected of 0.4% in the month of July, as the consumers have saved less money of their earning. Meanwhile, the personal income has risen up by 0.2% which was less than the previous expectation of 0.3% by the economists of US.
A regional manufacturing survey in Texas has suggested no growth in the month of August and the report confirmed the slowdown in the economy and industrial output in the entire country.
Wall Street saw a small fall and the Dow Jones industrial average index fell down by nearly 0.7% by the midday trading. This has been the fastest growth in consumer spending since March but the total spending is still well below the pre-recession levels.
This survey data suggests that the personal income of US grew more slowly which means the savings rate fell down to 5.9% from 6.2% of June in the US. Before the global economic downturn the savings rate was almost at 0% as people were spending almost everything they earned.
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